BTIG sees no meaningful regulatory pushback from Mr. Cooper deal

BTIG says Rocket Companies (RKT) is acquiring Mr. Cooper (COOP) in an all-stock deal valuing Cooper at roughly $143 ore share, plus a $2 cash dividend for shareholders upon deal closing, expected for Q4 of this year. The firm does not expect meaningful regulatory pushback, even though the combination leaves Rocket with $2.1 trillion or close to a 20% market share in mortgage servicing, “placing it comfortably ahead of the four other lead non-banks.” The deal helps validate the growing value for mortgage servicers achieving operational and financial scale, the analyst tells investors in a research note. However, BTIG thinks the combination could create a modest headwind for mortgage-backed securities investors given the lower refinancing costs it expects to manifest from Rocket having more meaningful scale and overall market breadth.