U.S. Senators Question DOJ, FTC Silence on Rocket Companies’ Redfin Acquisition

A coalition of U.S. Senators, including Elizabeth Warren, Cory Booker, Bernie Sanders, Mazie Hirono, and Tina Smith, has urged the Department of Justice and the Federal Trade Commission to explain why they did not challenge Rocket Companies’ $1.75 billion acquisition of real estate platform Redfin. The lawmakers expressed concern that this merger, along with Rocket’s pending $9.4 billion purchase of mortgage servicer Mr. Cooper, could create a vertically integrated conglomerate dominating the homebuying market, reducing consumer choice, and driving up prices. They warned that Rocket could steer Redfin users toward its own affiliated mortgage and real estate services, potentially manipulating mortgage rates using consumer data. The senators highlighted that the deal combines the second-largest mortgage originator, the largest mortgage servicer, and the third-most-visited real estate brokerage website in the U.S., raising antitrust and competition issues. Despite these concerns, the Trump Administration allowed the merger waiting period to expire without action, prompting calls for clarity from federal antitrust agencies. The lawmakers stressed the risk of exacerbating affordability challenges in a housing market already burdened by high prices and rising mortgage rates.