April 6, 2025 • 12 mins
Rocket Companies shakes up the real estate industry with major acquisitions of Redfin and Mr. Cooper, potentially creating a streamlined end-to-end ecosystem for buying and selling homes. The moves could transform how we purchase properties by integrating online listings, mortgage services, and closing processes into one platform.
• Rocket Companies buying Redfin for $1.75 billion and Mr. Cooper for $9.4 billion
• Potential benefits include streamlined processes, significant cost savings, and personalized experiences
• Concerns raised about conflicts of interest and the "kickback machine" possibility
• Impact on traditional real estate agents and their future role in transactions
• Strategic business moves projected to create $200 million in annual synergies
• Questions about how technology will continue to change real estate transactions
• Current housing market conditions making efficiency and affordability particularly appealing
For more information about special needs housing solutions, contact Flowers and Associates property rentals at 901-445-8148 or visit flowersandassociatesbooking.com. Check out Robert Flowers' book "The Joy of Helping Others: Creating Passive Income Through Special Needs Housing" on Amazon.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Okay, so you know how important it is to keep up with
big changes right, Especiallyin something as big as housing.
You know what?
Speaker 2 (00:08):
I mean yeah, for sure .
Speaker 1 (00:09):
And lately there have been some pretty major
headlines about some things thatcould actually really change
how we buy and sell homes.
Speaker 2 (00:17):
Oh, yeah, totally.
Speaker 1 (00:18):
So today on the Deep Dive, we're going to try to
break down what seems like areally big deal.
Rocket companies is making ahuge move into real estate in a
big way.
Speaker 2 (00:28):
It's definitely got everyone talking and I think you
hit the nail on the head whenyou talk about how buying or
selling a house can feel so oldfashioned, you know like it's
expensive, it takes forever, andyou just feel like somebody
needs to come in and liketotally shake things up Right,
especially you know with howmuch housing costs these days.
The shake things up Right,especially you know with how
much housing costs these days,the idea that you could do it in
a way that's like faster andcheaper, is going to make people
(00:48):
really interested.
Speaker 1 (00:49):
Yeah, for sure, and the big news that's got everyone
talking is about these hugemoves that Rocket Company is
making.
Speaker 2 (00:56):
Yeah.
Speaker 1 (00:57):
You know they just bought Redfin for one point
seven, five billion dollars andRedfin is, you know, a huge name
in online real estate listingsand brokerage.
Speaker 2 (01:04):
Right.
Speaker 1 (01:05):
And then there's the even bigger story they're
planned to buy Mr Cooper, whichis a competitor in the mortgage
world, and that deal is worth amassive $9.4 billion, all in
stock.
Speaker 2 (01:17):
Exactly, and what we're going to try to do in this
deep dive is really understandwhat these acquisitions could
mean for the future of realestate.
You know how are we going tobuy and sell houses in the
future, right?
But more importantly, we wantto focus on what this could mean
for you, the listener.
You know, are you thinkingabout buying your first house?
Are you thinking about sellingyour current house, or are you
(01:38):
just kind of keeping an eye onthe market?
Speaker 1 (01:39):
Yeah, so let's just give a quick overview for people
who might not be totallyfamiliar with rocket companies.
A lot of people know themthrough rocket mortgage.
They're like a giant in themortgage industry one of the
biggest in the US and they'vealways been about using
technology to make mortgageseasier.
Speaker 2 (01:53):
Yeah.
Speaker 1 (01:54):
You know, I remember seeing on their website how they
say they can help you savethousands.
Speaker 2 (01:58):
Yeah, and there was even a time when they were
approving loans so fast thatsome people thought it was like
too good to be true.
That's right.
They really became known forbeing super efficient in the
mortgage world.
And then you have Redfin, whichI think most people probably
know for their website, which isreally good for like
interactive maps and findingtons of data about houses.
Speaker 1 (02:19):
Right.
Speaker 2 (02:19):
They've been around since 2004, went public in 2017,
and they've made some prettyinteresting acquisitions
themselves over the years.
They bought WalkScore andRentPath, which owns
ApartmentGuide and Rentcom, andit's worth remembering that back
in 2019, redfin started doingthis thing, where, in some
places, buyers could make offerswithout even needing a buyer's
(02:39):
agent.
Speaker 1 (02:40):
Which was a pretty big deal at the time.
A lot of people saw that as amove to kind of disrupt the
traditional way that real estateagents do things, and so when
you put these two companiestogether, it starts to look like
what one person we were readingcalled a narrow vertical
platform, which basically meansimagine one company that
controls almost every part ofbuying or selling a house.
Speaker 2 (03:01):
Right.
Speaker 1 (03:02):
Like, from finding the house online, to getting the
mortgage, to getting the keysit's all done through this one
company.
Speaker 2 (03:08):
That's a really interesting idea, and it leads
us to the big question we wantto explore today is all of this.
You know, with Rocketsacquisitions leading the way, is
this consolidation in theindustry ultimately a good thing
or a bad thing for people likeyou who are buying or selling
houses?
Speaker 1 (03:22):
Yeah, so let's start by looking at the potential good
stuff.
Ok, let's talk about it.
So, right off the bat, the mostobvious benefit seems to be
that it could make the wholeprocess a lot smoother.
Speaker 2 (03:34):
Yeah.
Speaker 1 (03:35):
Imagine if you had this end-to-end ecosystem, like
one of the articles we readcalled it, where all the
different parts of a real estatedeal were connected together.
Speaker 2 (03:44):
Yeah.
Speaker 1 (03:44):
That could mean.
Speaker 2 (03:47):
Exactly Imagine going from looking at houses on
Redfin to getting pre-approvedfor a Rocket mortgage all in the
same place, online.
Speaker 1 (03:56):
Right.
Speaker 2 (03:56):
And then picture if title and closing services were
built in too.
You know that could really cutdown on all the hassle that
comes with real estatetransactions, which can be
really complicated andfrustrating.
Speaker 1 (04:06):
Yeah, totally.
And then there's a big one fora lot of people saving money.
Of course a big one for a lotof people, saving money, of
course.
Rocket's own website even saysthat you could save thousands if
you buy or sell your housethrough their platform.
Yeah, and we saw one estimatethat said you could save like
$20,000 in fees on a $430,000house.
Speaker 2 (04:23):
Wow.
Speaker 1 (04:24):
That's a lot of money for anyone who's trying to buy
a house.
Speaker 2 (04:26):
For sure, and the combined savings that they're
advertising for using theirplatform for both buying and
selling are definitely eyecatching.
I think this really speaks tothe fact that a lot of people
feel like traditional realestate transactions just cost
way too much.
So if Rocket can actuallydeliver on these promises, you
know, if they can actually savepeople money by making the
process more efficient, that's ahuge incentive for people who
(04:49):
are buying and selling houses.
Speaker 1 (04:51):
Exactly shit.
That's a huge incentive forpeople who are buying and
selling houses.
Exactly, it goes back to thatthing.
We hear a lot about how peoplewant a less, you know, archaic
way of doing things.
They want something that's moreconvenient, especially when
you're dealing with such bigfinancial decisions and beyond
just a smoother process andsaving money, there's also the
possibility that you could get amore personalized experience.
Oh yeah, how so?
So Redfin already has a massiveaudience.
Speaker 2 (05:10):
There's also the possibility that you could get a
more personalized experience.
Speaker 1 (05:12):
Oh yeah, how so?
So Redfin already has a massiveaudience.
They get like 50 million peoplevisiting their website every
month.
Speaker 2 (05:18):
Wow.
Speaker 1 (05:18):
That's a lot of people, and if you combine that
with all the financial data thatRocket has on borrowers, you
can see how, in the future, theycould really tailor the
experience to your specificneeds and your financial
situation.
Speaker 2 (05:36):
That's a great point.
You know, having all that dataand being able to analyze it
could lead to betterrecommendations for houses that
you might like Right, moreaccurate pre-approvals for
mortgages and just an overallexperience that feels like it's
made for you.
Speaker 1 (05:43):
Yeah, but it's important that we also look at
you know the potential downsidesand some of the arguments that
people have made against theseacquisitions.
Speaker 2 (05:50):
Definitely we need to look at both sides.
Speaker 1 (05:52):
So one of the strongest opinions that we saw
came from someone whospecializes in antitrust laws,
and they basically said thatthese deals could turn into what
they called a kickback machine.
Speaker 2 (06:03):
Oh wow, what does that mean?
Speaker 1 (06:05):
The concern is that Rocket might encourage people to
use all of their services atevery step of the process, you
know, so they can collect feesalong the way.
Speaker 2 (06:13):
Oh, I see.
Speaker 1 (06:14):
Now, it's important to remember that this is just
one person's opinion and Rockethas strongly denied these claims
.
You know they've called themuninformed and reckless.
Oh, wow.
They're saying that kickbacksare illegal and that their goal
is to actually make buying ahouse easier and more affordable
for everyone.
OK is to actually make buying ahouse easier and more affordable
for everyone.
Okay, but I think theunderlying concern is that there
(06:37):
could be conflicts of interestwhen one company has so much
control over all the differentparts of the transaction, and
that's something for you, as aconsumer, to think about.
Speaker 2 (06:44):
Yeah, that makes sense.
Speaker 1 (06:45):
Another big concern that people have brought up is
what could happen to real estateagents.
You know, if Rocket's plan forthis more integrated platform
actually works out, it canreally change the role that
agents and brokers play in theprocess.
Speaker 2 (06:59):
Right.
Speaker 1 (07:00):
One person we read was really worried about the
future of the entire real estateindustry if this happens.
Speaker 2 (07:04):
Yeah, that's a valid point.
You know real estate agents.
They do a lot to help buyersand sellers through what can be
a very complicated and emotionalprocess.
They know the local market,they can negotiate deals and
they provide personal support,which is really valuable, you
know.
So the question is how willthis new model where everything
is handled by one company, howwill that change the need for
(07:27):
traditional real estate agentsand how will those agents adapt
to this changing industry?
Speaker 1 (07:32):
Yeah, and there's another point that some loan
officers brought up.
They were saying that whileRocket's technology-driven
approach is really efficient fora lot of transactions, it might
not be the best option forbuyers who have more complicated
financial situations.
You know people who need morepersonalized guidance.
Speaker 2 (07:48):
Oh, that's interesting.
Speaker 1 (07:49):
So it might not be a one-size-fits all solution for
everyone.
Yeah, I see what you mean.
So beyond just the potentialgood and bad stuff for you,
let's look at why rocketcompanies is making these moves.
Like what's their biggerstrategy here?
Speaker 2 (08:02):
From a strategic point of view, these
acquisitions definitely seemlike a way to really shake up
the market Right One article weread even compared it to how
technology has completelychanged other industries like
travel and stock investing.
Speaker 1 (08:15):
Oh yeah, I see the comparison.
Speaker 2 (08:17):
Rocket seems to be trying to bring that same kind
of technology driven efficiencyand integration to the real
estate world.
Speaker 1 (08:24):
It does feel like they're trying to create a more
seamless and potentially cheaperalternative to the way things
are done traditionally.
Speaker 2 (08:32):
Yeah.
Speaker 1 (08:33):
And this isn't happening in a vacuum.
You know we notice that there'sa lot of other activity
happening in the online realestate world, like Zillow is
partnering with Redfin onrentals and CoStar just bought
homescom.
Speaker 2 (08:44):
Oh, wow.
Speaker 1 (08:45):
It seems like we're seeing a trend toward bigger,
more comprehensive platforms.
Speaker 2 (08:49):
Yeah, exactly, it's like a wave of consolidation is
happening in the online realestate space and for Rocket the
potential benefits are huge.
Speaker 1 (08:57):
How so.
Speaker 2 (08:58):
Well, they're predicting about $200 million in
annual synergies, wow, whichmeans they think they can save
$140 million in operatingexpenses by combining things and
streamlining processes.
Speaker 1 (09:11):
Right.
Speaker 2 (09:11):
And then another $60 million in extra revenue by
integrating their mortgage andtitle services with Redfin's
brokerage transactions.
Speaker 1 (09:18):
That's a lot of money and the Mr Cooper acquisition
seems like it's really aboutexpanding their mortgage
servicing business in a big way.
Speaker 2 (09:25):
Absolutely.
That deal is expected to reallyincrease their loan volume and
lower their costs for gettingnew customers.
By merging with Mr Cooper,they're going to become this
massive force in mortgageservicing with almost 7 million
new customers, which reallysolidifies their position in the
housing market.
Speaker 1 (09:43):
And we can't forget about the current state of the
housing market.
You know our sources mentionedthat with mortgage rates so high
and house prices so high, it'sbecome really tough for a lot of
people to buy a house.
Speaker 2 (09:52):
Yeah, it's a tough market out there.
Speaker 1 (09:54):
So in this environment, Rocket's message
about making things moreefficient and affordable might
be really appealing to peoplewho are trying to buy or sell a
house.
Speaker 2 (10:02):
Definitely, the market conditions are definitely
pushing people to look forsolutions that can make buying
and selling a house easier andless expensive.
Speaker 1 (10:10):
Exactly, and Rocket is making these moves at a time
when people might be more openthan ever to trying new ways to
navigate the real estate process.
Speaker 2 (10:20):
That's true.
Speaker 1 (10:21):
So, before we wrap up , I'd like to take a moment to
thank our sponsors.
Speaker 2 (10:24):
Okay, great.
Speaker 1 (10:25):
Today's Deep Dive is brought to you in part by
Flowers and Associates propertyrentals.
They specialize in providinghousing solutions for people
with special needs.
Speaker 2 (10:34):
That's wonderful.
Speaker 1 (10:35):
And we also want to acknowledge Robert Flowers, the
founder of Flowers andAssociates.
He's also a published author.
Speaker 2 (10:40):
Oh, very cool.
Speaker 1 (10:41):
His books include his first one called the Joy of
Helping Others Creating PassiveIncome Through Special Needs
Housing, and you can find thaton Amazon Excellent.
If you're interested inlearning more about their
services or if you want to getin touch with them, you can call
them at 901-445-8148.
Or you can visit their websiteat
flowersandassociatesbookingcom.
Speaker 2 (11:01):
Great.
So, as we finish up this deepdive into Rocket Company's big
plans, what are the keytakeaways for our listeners?
Speaker 1 (11:10):
Well, I think it's pretty clear that we could be
seeing some major changes in theway we buy and sell houses.
Speaker 2 (11:15):
Yeah.
Speaker 1 (11:15):
Rockets.
Acquisitions of Redfin and MrCooper really show that they're
moving towards a more integratedtechnology driven model.
For sure, and the potentialbenefits are definitely
appealing, you know a smootherprocess and the possibility of
saving money.
Speaker 2 (11:31):
Right, but it's also important to remember the
potential downsides, like whatcould happen to real estate
agents and what could be theunintended consequences of
having so much powerconcentrated in one company.
Speaker 1 (11:40):
Yeah, definitely, and while Rocket says those
concerns about a kickbackmachine are unfounded, it's
still something to keep an eyeon when one company controls so
many parts of the transaction.
So, at the end of the day,these developments are something
that anyone who's even remotelyinterested in the housing
market should be aware of,whether you're planning to buy
or sell right now, or justthinking about the future.
Speaker 2 (12:01):
I agree.
And this leads to a reallyimportant question how is
technology going to continue tochange the way we buy and sell
houses Right?
What's the role of traditionalreal estate professionals going
to be in this new world?
Speaker 1 (12:14):
Yeah.
Speaker 2 (12:15):
And maybe most importantly for you as a
listener what does value reallymean when you're buying or
selling a house?
Speaker 1 (12:23):
Those are great questions to think about and if
you want to explore this further, we encourage you to do some of
your own research on RocketCompany's Redfin and Mr Cooper,
yeah, check out some newsarticles, read some industry
analysis and form your ownopinions about these big changes
that are happening.
Speaker 2 (12:38):
Exactly.
Speaker 1 (12:39):
Thanks for joining us for this deep dive.
We hope this has given you somevaluable information and
context about these potentiallygroundbreaking changes in the
real estate market.
Speaker 2 (12:47):
Thanks for listening everyone.
Speaker 1 (12:48):
See ya.
Okay, so you know how important it is to keep up with
big changes right, Especiallyin something as big as housing.
You know what?
Speaker 2 (00:08):
I mean yeah, for sure .
Speaker 1 (00:09):
And lately there have been some pretty major
headlines about some things thatcould actually really change
how we buy and sell homes.
Speaker 2 (00:17):
Oh, yeah, totally.
Speaker 1 (00:18):
So today on the Deep Dive, we're going to try to
break down what seems like areally big deal.
Rocket companies is making ahuge move into real estate in a
big way.
Speaker 2 (00:28):
It's definitely got everyone talking and I think you
hit the nail on the head whenyou talk about how buying or
selling a house can feel so oldfashioned, you know like it's
expensive, it takes forever, andyou just feel like somebody
needs to come in and liketotally shake things up Right,
especially you know with howmuch housing costs these days.
The shake things up Right,especially you know with how
much housing costs these days,the idea that you could do it in
a way that's like faster andcheaper, is going to make people
(00:48):
really interested.
Speaker 1 (00:49):
Yeah, for sure, and the big news that's got everyone
talking is about these hugemoves that Rocket Company is
making.
Speaker 2 (00:56):
Yeah.
Speaker 1 (00:57):
You know they just bought Redfin for one point
seven, five billion dollars andRedfin is, you know, a huge name
in online real estate listingsand brokerage.
Speaker 2 (01:04):
Right.
Speaker 1 (01:05):
And then there's the even bigger story they're
planned to buy Mr Cooper, whichis a competitor in the mortgage
world, and that deal is worth amassive $9.4 billion, all in
stock.
Speaker 2 (01:17):
Exactly, and what we're going to try to do in this
deep dive is really understandwhat these acquisitions could
mean for the future of realestate.
You know how are we going tobuy and sell houses in the
future, right?
But more importantly, we wantto focus on what this could mean
for you, the listener.
You know, are you thinkingabout buying your first house?
Are you thinking about sellingyour current house, or are you
(01:38):
just kind of keeping an eye onthe market?
Speaker 1 (01:39):
Yeah, so let's just give a quick overview for people
who might not be totallyfamiliar with rocket companies.
A lot of people know themthrough rocket mortgage.
They're like a giant in themortgage industry one of the
biggest in the US and they'vealways been about using
technology to make mortgageseasier.
Speaker 2 (01:53):
Yeah.
Speaker 1 (01:54):
You know, I remember seeing on their website how they
say they can help you savethousands.
Speaker 2 (01:58):
Yeah, and there was even a time when they were
approving loans so fast thatsome people thought it was like
too good to be true.
That's right.
They really became known forbeing super efficient in the
mortgage world.
And then you have Redfin, whichI think most people probably
know for their website, which isreally good for like
interactive maps and findingtons of data about houses.
Speaker 1 (02:19):
Right.
Speaker 2 (02:19):
They've been around since 2004, went public in 2017,
and they've made some prettyinteresting acquisitions
themselves over the years.
They bought WalkScore andRentPath, which owns
ApartmentGuide and Rentcom, andit's worth remembering that back
in 2019, redfin started doingthis thing, where, in some
places, buyers could make offerswithout even needing a buyer's
(02:39):
agent.
Speaker 1 (02:40):
Which was a pretty big deal at the time.
A lot of people saw that as amove to kind of disrupt the
traditional way that real estateagents do things, and so when
you put these two companiestogether, it starts to look like
what one person we were readingcalled a narrow vertical
platform, which basically meansimagine one company that
controls almost every part ofbuying or selling a house.
Speaker 2 (03:01):
Right.
Speaker 1 (03:02):
Like, from finding the house online, to getting the
mortgage, to getting the keysit's all done through this one
company.
Speaker 2 (03:08):
That's a really interesting idea, and it leads
us to the big question we wantto explore today is all of this.
You know, with Rocketsacquisitions leading the way, is
this consolidation in theindustry ultimately a good thing
or a bad thing for people likeyou who are buying or selling
houses?
Speaker 1 (03:22):
Yeah, so let's start by looking at the potential good
stuff.
Ok, let's talk about it.
So, right off the bat, the mostobvious benefit seems to be
that it could make the wholeprocess a lot smoother.
Speaker 2 (03:34):
Yeah.
Speaker 1 (03:35):
Imagine if you had this end-to-end ecosystem, like
one of the articles we readcalled it, where all the
different parts of a real estatedeal were connected together.
Speaker 2 (03:44):
Yeah.
Speaker 1 (03:44):
That could mean.
Speaker 2 (03:47):
Exactly Imagine going from looking at houses on
Redfin to getting pre-approvedfor a Rocket mortgage all in the
same place, online.
Speaker 1 (03:56):
Right.
Speaker 2 (03:56):
And then picture if title and closing services were
built in too.
You know that could really cutdown on all the hassle that
comes with real estatetransactions, which can be
really complicated andfrustrating.
Speaker 1 (04:06):
Yeah, totally.
And then there's a big one fora lot of people saving money.
Of course a big one for a lotof people, saving money, of
course.
Rocket's own website even saysthat you could save thousands if
you buy or sell your housethrough their platform.
Yeah, and we saw one estimatethat said you could save like
$20,000 in fees on a $430,000house.
Speaker 2 (04:23):
Wow.
Speaker 1 (04:24):
That's a lot of money for anyone who's trying to buy
a house.
Speaker 2 (04:26):
For sure, and the combined savings that they're
advertising for using theirplatform for both buying and
selling are definitely eyecatching.
I think this really speaks tothe fact that a lot of people
feel like traditional realestate transactions just cost
way too much.
So if Rocket can actuallydeliver on these promises, you
know, if they can actually savepeople money by making the
process more efficient, that's ahuge incentive for people who
(04:49):
are buying and selling houses.
Speaker 1 (04:51):
Exactly shit.
That's a huge incentive forpeople who are buying and
selling houses.
Exactly, it goes back to thatthing.
We hear a lot about how peoplewant a less, you know, archaic
way of doing things.
They want something that's moreconvenient, especially when
you're dealing with such bigfinancial decisions and beyond
just a smoother process andsaving money, there's also the
possibility that you could get amore personalized experience.
Oh yeah, how so?
So Redfin already has a massiveaudience.
Speaker 2 (05:10):
There's also the possibility that you could get a
more personalized experience.
Speaker 1 (05:12):
Oh yeah, how so?
So Redfin already has a massiveaudience.
They get like 50 million peoplevisiting their website every
month.
Speaker 2 (05:18):
Wow.
Speaker 1 (05:18):
That's a lot of people, and if you combine that
with all the financial data thatRocket has on borrowers, you
can see how, in the future, theycould really tailor the
experience to your specificneeds and your financial
situation.
Speaker 2 (05:36):
That's a great point.
You know, having all that dataand being able to analyze it
could lead to betterrecommendations for houses that
you might like Right, moreaccurate pre-approvals for
mortgages and just an overallexperience that feels like it's
made for you.
Speaker 1 (05:43):
Yeah, but it's important that we also look at
you know the potential downsidesand some of the arguments that
people have made against theseacquisitions.
Speaker 2 (05:50):
Definitely we need to look at both sides.
Speaker 1 (05:52):
So one of the strongest opinions that we saw
came from someone whospecializes in antitrust laws,
and they basically said thatthese deals could turn into what
they called a kickback machine.
Speaker 2 (06:03):
Oh wow, what does that mean?
Speaker 1 (06:05):
The concern is that Rocket might encourage people to
use all of their services atevery step of the process, you
know, so they can collect feesalong the way.
Speaker 2 (06:13):
Oh, I see.
Speaker 1 (06:14):
Now, it's important to remember that this is just
one person's opinion and Rockethas strongly denied these claims
.
You know they've called themuninformed and reckless.
Oh, wow.
They're saying that kickbacksare illegal and that their goal
is to actually make buying ahouse easier and more affordable
for everyone.
OK is to actually make buying ahouse easier and more affordable
for everyone.
Okay, but I think theunderlying concern is that there
(06:37):
could be conflicts of interestwhen one company has so much
control over all the differentparts of the transaction, and
that's something for you, as aconsumer, to think about.
Speaker 2 (06:44):
Yeah, that makes sense.
Speaker 1 (06:45):
Another big concern that people have brought up is
what could happen to real estateagents.
You know, if Rocket's plan forthis more integrated platform
actually works out, it canreally change the role that
agents and brokers play in theprocess.
Speaker 2 (06:59):
Right.
Speaker 1 (07:00):
One person we read was really worried about the
future of the entire real estateindustry if this happens.
Speaker 2 (07:04):
Yeah, that's a valid point.
You know real estate agents.
They do a lot to help buyersand sellers through what can be
a very complicated and emotionalprocess.
They know the local market,they can negotiate deals and
they provide personal support,which is really valuable, you
know.
So the question is how willthis new model where everything
is handled by one company, howwill that change the need for
(07:27):
traditional real estate agentsand how will those agents adapt
to this changing industry?
Speaker 1 (07:32):
Yeah, and there's another point that some loan
officers brought up.
They were saying that whileRocket's technology-driven
approach is really efficient fora lot of transactions, it might
not be the best option forbuyers who have more complicated
financial situations.
You know people who need morepersonalized guidance.
Speaker 2 (07:48):
Oh, that's interesting.
Speaker 1 (07:49):
So it might not be a one-size-fits all solution for
everyone.
Yeah, I see what you mean.
So beyond just the potentialgood and bad stuff for you,
let's look at why rocketcompanies is making these moves.
Like what's their biggerstrategy here?
Speaker 2 (08:02):
From a strategic point of view, these
acquisitions definitely seemlike a way to really shake up
the market Right One article weread even compared it to how
technology has completelychanged other industries like
travel and stock investing.
Speaker 1 (08:15):
Oh yeah, I see the comparison.
Speaker 2 (08:17):
Rocket seems to be trying to bring that same kind
of technology driven efficiencyand integration to the real
estate world.
Speaker 1 (08:24):
It does feel like they're trying to create a more
seamless and potentially cheaperalternative to the way things
are done traditionally.
Speaker 2 (08:32):
Yeah.
Speaker 1 (08:33):
And this isn't happening in a vacuum.
You know we notice that there'sa lot of other activity
happening in the online realestate world, like Zillow is
partnering with Redfin onrentals and CoStar just bought
homescom.
Speaker 2 (08:44):
Oh, wow.
Speaker 1 (08:45):
It seems like we're seeing a trend toward bigger,
more comprehensive platforms.
Speaker 2 (08:49):
Yeah, exactly, it's like a wave of consolidation is
happening in the online realestate space and for Rocket the
potential benefits are huge.
Speaker 1 (08:57):
How so.
Speaker 2 (08:58):
Well, they're predicting about $200 million in
annual synergies, wow, whichmeans they think they can save
$140 million in operatingexpenses by combining things and
streamlining processes.
Speaker 1 (09:11):
Right.
Speaker 2 (09:11):
And then another $60 million in extra revenue by
integrating their mortgage andtitle services with Redfin's
brokerage transactions.
Speaker 1 (09:18):
That's a lot of money and the Mr Cooper acquisition
seems like it's really aboutexpanding their mortgage
servicing business in a big way.
Speaker 2 (09:25):
Absolutely.
That deal is expected to reallyincrease their loan volume and
lower their costs for gettingnew customers.
By merging with Mr Cooper,they're going to become this
massive force in mortgageservicing with almost 7 million
new customers, which reallysolidifies their position in the
housing market.
Speaker 1 (09:43):
And we can't forget about the current state of the
housing market.
You know our sources mentionedthat with mortgage rates so high
and house prices so high, it'sbecome really tough for a lot of
people to buy a house.
Speaker 2 (09:52):
Yeah, it's a tough market out there.
Speaker 1 (09:54):
So in this environment, Rocket's message
about making things moreefficient and affordable might
be really appealing to peoplewho are trying to buy or sell a
house.
Speaker 2 (10:02):
Definitely, the market conditions are definitely
pushing people to look forsolutions that can make buying
and selling a house easier andless expensive.
Speaker 1 (10:10):
Exactly, and Rocket is making these moves at a time
when people might be more openthan ever to trying new ways to
navigate the real estate process.
Speaker 2 (10:20):
That's true.
Speaker 1 (10:21):
So, before we wrap up , I'd like to take a moment to
thank our sponsors.
Speaker 2 (10:24):
Okay, great.
Speaker 1 (10:25):
Today's Deep Dive is brought to you in part by
Flowers and Associates propertyrentals.
They specialize in providinghousing solutions for people
with special needs.
Speaker 2 (10:34):
That's wonderful.
Speaker 1 (10:35):
And we also want to acknowledge Robert Flowers, the
founder of Flowers andAssociates.
He's also a published author.
Speaker 2 (10:40):
Oh, very cool.
Speaker 1 (10:41):
His books include his first one called the Joy of
Helping Others Creating PassiveIncome Through Special Needs
Housing, and you can find thaton Amazon Excellent.
If you're interested inlearning more about their
services or if you want to getin touch with them, you can call
them at 901-445-8148.
Or you can visit their websiteat
flowersandassociatesbookingcom.
Speaker 2 (11:01):
Great.
So, as we finish up this deepdive into Rocket Company's big
plans, what are the keytakeaways for our listeners?
Speaker 1 (11:10):
Well, I think it's pretty clear that we could be
seeing some major changes in theway we buy and sell houses.
Speaker 2 (11:15):
Yeah.
Speaker 1 (11:15):
Rockets.
Acquisitions of Redfin and MrCooper really show that they're
moving towards a more integratedtechnology driven model.
For sure, and the potentialbenefits are definitely
appealing, you know a smootherprocess and the possibility of
saving money.
Speaker 2 (11:31):
Right, but it's also important to remember the
potential downsides, like whatcould happen to real estate
agents and what could be theunintended consequences of
having so much powerconcentrated in one company.
Speaker 1 (11:40):
Yeah, definitely, and while Rocket says those
concerns about a kickbackmachine are unfounded, it's
still something to keep an eyeon when one company controls so
many parts of the transaction.
So, at the end of the day,these developments are something
that anyone who's even remotelyinterested in the housing
market should be aware of,whether you're planning to buy
or sell right now, or justthinking about the future.
Speaker 2 (12:01):
I agree.
And this leads to a reallyimportant question how is
technology going to continue tochange the way we buy and sell
houses Right?
What's the role of traditionalreal estate professionals going
to be in this new world?
Speaker 1 (12:14):
Yeah.
Speaker 2 (12:15):
And maybe most importantly for you as a
listener what does value reallymean when you're buying or
selling a house?
Speaker 1 (12:23):
Those are great questions to think about and if
you want to explore this further, we encourage you to do some of
your own research on RocketCompany's Redfin and Mr Cooper,
yeah, check out some newsarticles, read some industry
analysis and form your ownopinions about these big changes
that are happening.
Speaker 2 (12:38):
Exactly.
Speaker 1 (12:39):
Thanks for joining us for this deep dive.
We hope this has given you somevaluable information and
context about these potentiallygroundbreaking changes in the
real estate market.
Speaker 2 (12:47):
Thanks for listening everyone.
Speaker 1 (12:48):
See ya.
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