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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 72 October 2025 J O U R N A L Default Servicing ROCKET COMPANIES FINALIZES $14.2 BILLION MR. COOPER ACQUISITION R ocket Companies has completed its acquisition of Mr. Cooper Group, in turn, bringing together a combined servicing portfolio of nearly 10 million homeowners. "Homeownership is the bedrock of the American Dream. By combining mortgage servicing and loan origination, along with home search through Redfin, we are paving the path for Americans to own the dream," said Varun Krishna, CEO and Director of Rocket Companies. "Jay Bray and his team have built a technology-driven platform that is the backbone of Mr. Cooper, helping it scale to become the largest servicer in the country. By integrating Mr. Cooper's servicing strength with Rocket's origination capabilities and AI technology and estab- lished strong national brand, our goal is to lower costs and make the process easier." After 25 years driving the expansion and culture of Mr. Cooper, Jay Bray, Mr. Cooper's current CEO, will join Rocket as the new President and CEO of Rocket Mortgage, reporting to Rocket Compa- nies CEO Krishna. Bray will also join Rocket's board of directors. "This transaction brings to a close a multi-year journey during which Mr. Cooper grew to become the nation's largest servicer and produced enormous value for our clients, partners, stakehold- ers, and investors," Bray said. "Now, by joining forces with Rocket, we start a new journey, which I believe offers an even bigger opportunity. Through the power of our platform and our people, we will create a more personalized experience that makes owning a home more attain- able and easier to navigate. Together, we will deliver the change the housing industry needs." As part of the acquisition, Mr. Cooper and all its servicing functions will be rebranded under the Rocket umbrella. Upon closing of the deal, Mr. Cooper has officially delisted from the stock ex- change following its acquisition by Rock- et. Shareholders approved the transaction in September, agreeing to an exchange where they will receive 11 shares of Rocket for each share of Mr. Cooper. Also, a potential $2 per share dividend may be issued before the deal's completion. Back in July, Rocket Companies completed its acquisition of Redfin in an all-stock transaction for $1.75 billion. Founded in 2004, Redfin operates a home search platform with more than one million for-sale and rental listings and a tech-powered brokerage of more than 2,200 agents. Rocket's digital platform has grown to provide home financing in all 50 states across more than 3,000 counties and parishes. Founded in 1985, Rocket Companies is a Detroit-based fintech platform includ- ing mortgage, real estate, and personal finance businesses: Rocket Mortgage, Redfin, Mr. Cooper, Rocket Homes, Rocket Close, Rocket Money, and Rocket Loans. Mr. Cooper Group provides customer-centric servicing, origination, and transaction-based services related principally to single-family residences throughout the United States., with operations under its primary brands: Mr. Cooper, Xome, and Rushmore Servicing. CHALLENGING THE FORECLOSURE ABUSE PREVENTION ACT T wo Legal League member law firms—Stern & Eisenberg and Hladik, Onorato & Federman LLP—have announced the filing of a federal class action lawsuit in the U.S. District Court for the Northern District of New York on behalf of mortgage hold- ers and servicers across the state. The lawsuit challenges the applica- tion of the New York Foreclosure Abuse Prevention Act (FAPA), which extin- guished enforcement rights in thousands of valid mortgage loans by altering the statute of limitations. The complaint alleges that this legislative change unlaw- fully deprived mortgage holders of vested property and contract rights, in violation of the U.S. Constitution. "By stripping assignees of mortgages of their right to enforce longstanding mort- gage contracts, the State of New York has effectively taken private property without just compensation," said Steven K. Eisen- berg, Partner at Stern & Eisenberg. The proposed class consists of all mortgage holders, investors, and servicers whose ability to enforce their mortgage rights was extinguished or im- paired by the application of FAPA. The lawsuit seeks declaratory relief and just compensation for affected parties. In late 2022, New York State Gov.