"Rocket and Mr. Cooper's board of directors signed off on the deal in late July. Rocket Holdings Inc. which controls 79% of Rocket's voting power already provided written consent for the stock issuance, removing the need for a Rocket shareholder vote. In late August, the Federal Housing Finance Agency (FHFA) approved the merger, subject to a 20% cap on Fannie Mae and Freddie Mac servicing exposure for the combined company."
"BTIG analysts estimate that Rocket controls $400 billion in unpaid principal balance in Fannie and Freddie mortgage servicing rights (MSRs), while Mr. Cooper holds $560 billion. That's less than 15% of the $7.5 trillion market for the government-sponsored enterprises, leaving room to grow. Also on Wednesday, Rocket extended the deadline for investors to exchange debt issued by Nationstar Mortgage Holdings, Mr. Cooper's subsidiary, for Rocket's own paper."
Rocket and Mr. Cooper's boards approved the transaction, with Rocket Holdings Inc. providing written consent that removed the need for a Rocket shareholder vote. The Federal Housing Finance Agency approved the merger in late August with a 20% cap on combined Fannie Mae and Freddie Mac servicing exposure. BTIG estimates show Rocket controls $400 billion and Mr. Cooper $560 billion in unpaid principal balance in Fannie/Freddie MSRs, totaling under 15% of the $7.5 trillion market. Rocket extended the deadline to exchange Nationstar-issued debt for Rocket paper. The deal remains subject to satisfaction or waiver of remaining closing conditions per an SEC filing.
Read at www.housingwire.com
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