Rocket closes Redfin deal, rolls out buyer incentives

Rocket Companies announced Tuesday it has officially closed its $1.75 billion acquisition of Redfin.

In light of that, Rocket is launching a product called Rocket Preferred Pricing to encourage consumers to use both its mortgage and real estate services.

Borrowers who purchase a home with a Redfin agent and finance it through Rocket Mortgage can qualify for a one-percentage-point reduction in their interest rate for the first year of the loan, or receive up to $6,000 in lender credits at closing, according to a news release.

The offer applies to retail loans only, but Rocket said additional promotions for "homebuyers, real estate agents and mortgage brokers [will be released] in the coming months."

Rocket, in announcing plans to buy Redfin in March, predicted that after the brokerage is fully integrated it will generate over $60 million in revenue by combining its financing services with Redfin's real estate business.

READ MORE: Rocket's deals for Redfin, Mr. Cooper bring new growth and challenges

The real estate brokerage's grasp on the consumer home shopping experience is notable with nearly 50 million monthly users checking out the platform, creating ample opportunity for Rocket to cross-sell services.

The brokerage now features the branding "Redfin Powered by Rocket," and loan officers acquired through Redfin's 2022 acquisition of Bay Equity Home Loans have transitioned to Rocket Mortgage.

Glenn Kelman, CEO of Redfin, said the two united firms will help connect "the gulf between the American Dream of homeownership and reality."

"The reason Rocket and Redfin came together was to bridge that gap, so that the people who spend their days dreaming on Redfin.com can easily use Rocket financing to own their dream," Kelman said in a statement Tuesday.

Rocket's purchase of Redfin has sparked mortgage industry wide discussions around the changing landscape of lending, while also raising concerns from lawmakers. 

In June, lawmakers, including Sens. Elizabeth Warren, D-Mass, and Cory Booker, D-N.J., sent a letter to the Justice Department's Antitrust Division and the Federal Trade Commission demanding to know why the agencies did not review the Rocket-Redfin merger during the pre-merger review period.

The addition of Redfin and Mr. Cooper will turn Rocket into a "massive housing company that threatens to reduce choice and raise prices for American families in the housing market," the lawmakers warned in their letter dated June 4.

Attempts were also made via litigation pegged by a stockholder to postpone a Redfin shareholder meeting on June 4, to vote on the acquisition, but the vote went ahead as planned.