The mortgage company Rocket is buying competitor Mr. Cooper in an all-stock deal valued at $9.4 billion, just weeks after acquiring real estate listing company Redfin.
Rocket Cos. said Monday that bringing Mr. Cooper Group Inc. into the fold will create a business representing one in every six mortgages in the United States and give it almost 7 million additional clients. The deal will boost loan volumes, the company said, while lowering client acquisition costs.
FILE - A Rocket Companies sign is displayed on the exterior of the New York Stock Exchange, Aug. 6, 2020, in New York. (AP Photo/Mark Lennihan, file)
"By combining Mr. Cooper and Rocket, we will form the strongest mortgage company in the industry, offering an end-to-end homeownership experience backed by leading technology and grounded in customer care," Mr. Cooper Chairman and CEO Jay Bray, who will become president and CEO of Rocket Mortgage, said in a statement.
The U.S. housing market has been slumping for years with homebuyers, and sellers, buffeted by soaring mortgages rates and sky high prices that have put homes out of reach for many Americans.
People are also reading…
Companies like Rocket, which is on an acquisition streak, are attempting to create more of a one-stop shopping experience for frazzled would-be homebuyers.
Bray will report to Rocket Cos. CEO Varun Krishna.
Mr. Cooper shareholders will receive a fixed exchange ratio of 11 Rocket shares for each share of Mr. Cooper common stock. Mr. Cooper is based in Coppell, Texas.
FILE - A for sale sign stands outside a single-family home Thursday, June 27, 2024, in Englewood, Colo. (AP Photo/David Zalubowski, File)
Rocket shareholders will own approximately 75% of the combined company, while Mr. Cooper stockholders will own about 25%. The combined company's board will have 11 members, with nine being from Rocket and two from Mr. Cooper.
Earlier this month Rocket, based in Detroit, announced that it was buying Redfin in an all-stock deal worth $1.75 billion.
Redfin, which was founded in 2004, has more than 1 million for sale and rental listings on its online platform.
The National Association of Realtors announced this month that existing home sales rose 4.2% in February from January to a seasonally adjusted annual rate of 4.26 million units. That was in part thanks to easing mortgage rates and more properties on the market encouraging home shoppers.
The U.S. housing sales began to slump in 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes fell last year to their lowest level in nearly 30 years.
Power bills are America's #2 biggest financial stressor—right behind rent
Power bills are America's #2 biggest financial stressor—right behind rent
When it comes to household financial stress, it's no surprise that rent or mortgage payments top the list. But what may surprise you is that conducted by , electricity costs ranked as the second-most stressful household expense, outpacing credit card debt, car payments, and even insurance. In fact, for 62.8% of Americans in the southern U.S., power bills are a major source of financial stress. This is just behind rent/mortgage payments, but it far surpasses other common expenses.
According to the survey, 56% of respondents said that the growing cost of electricity has made it harder for them to balance their monthly budget. This financial strain is particularly worrying when 41.1% of people are already losing sleep over their power bills. When people are worried about how to pay their bills each month, it adds to the mental burden of dealing with financial pressures.
Rising electricity costs have made power bills a more significant part of the average American's financial burden. In fact, electricity costs now rank just behind rent/mortgage payments, outpacing expenses like credit card debt, car payments, and insurance. With the cost of living increasing and wages not keeping up, this escalating utility cost is creating an environment of financial instability.
Despite efforts to cut back on usage (56% of respondents reported reducing energy consumption), 50.9% of people say they feel powerless to control their utility rates. And with rising rates and unpredictable costs, many consumers feel they have no way to regain control over their energy bills.
So, what can be done to alleviate the financial strain?
- Lock in Fixed Rates: In many areas, consumers have the option to shop for energy plans and lock in fixed rates. By switching to a fixed-rate plan, you can avoid unexpected price hikes, giving you more control over your electricity costs.
- Energy Efficiency Upgrades: While investing in energy-efficient appliances might not be affordable for everyone, many people can make simple improvements to reduce energy consumption. The majority (56%) of respondents reported cutting back on usage to cope with high bills, and low-cost fixes like weatherizing your home or switching to energy-efficient lighting can make a big difference.
- Explore Payment Assistance: Many utilities offer payment plans or budget billing options that can help flatten out the costs of energy consumption across the year. Additionally, some states provide energy assistance programs for low-income households.
Rising electricity costs have become a growing financial burden, and many Americans are struggling to keep up. Taking proactive steps like switching to fixed-rate plans, making energy-efficient upgrades, and seeking assistance programs can help manage this financial stress.
was produced by and reviewed and distributed by Stacker.
