A PYMNTS Company

Senators Question Lack of Antitrust Action in Rocket Companies’ Redfin Deal

By  |  June 4, 2025

A group of prominent U.S. lawmakers is pressing federal regulators to explain their decision not to challenge Rocket Companies’ $1.75 billion acquisition of real estate platform Redfin, raising alarms over potential threats to competition in the housing sector.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    In a letter sent Wednesday, a coalition of senators, including Elizabeth Warren and Cory Booker, asked the Department of Justice (DOJ) and the Federal Trade Commission (FTC) why they allowed the merger to proceed unopposed, according to Reuters. The acquisition, initially announced in March, is set to be put to a shareholder vote the same day.

    The senators argue that combining Rocket, Redfin, and potentially Mr. Cooper—a mortgage servicing company Rocket plans to acquire in a separate $9.4 billion transaction—could result in a housing industry dominated by a few major players. The letter was also signed by Senators Bernie Sanders, Mazie Hirono, and Tina Smith.

    Per Reuters, lawmakers are concerned that Rocket’s growing control over various facets of the homebuying process—from mortgage origination to real estate brokerage and servicing—could ultimately reduce consumer choice and lead to higher prices. Redfin is currently the third-most-visited real estate website in the U.S., while Rocket is already a top mortgage originator and servicer.

    Related: Rocket Cos. to Acquire Redfin in $1.75 Billion All-Stock Deal

    “These deals would combine the second-largest mortgage originator, the largest mortgage servicer, and the third-most-visited real estate brokerage website in the United States,” the senators wrote, warning that such consolidation could “reduce choice and raise prices for American families.”

    The lawmakers contend that the Redfin deal may allow Rocket to direct users toward its own affiliated services, giving it an unfair market edge and enabling it to manipulate mortgage pricing using consumer data. According to Reuters, the senators cited concerns that such vertical integration could distort competition and limit options for buyers in an already strained housing market.

    Rocket Companies has not issued a public response to the letter, and a spokesperson did not immediately reply to a request for comment.

    While DOJ antitrust chief Gail Slater and FTC Chairman Andrew Ferguson have committed to evaluating deals for potential harm to consumers or workers, they have emphasized that they will not obstruct lawful mergers. Slater has described their approach as “America First antitrust,” aimed at protecting domestic market dynamics.

    The lawmakers’ concerns come at a time when housing affordability remains a critical issue nationwide. Average home prices have surged more than 50% since 2019, with mortgage rates hovering near 6.89% last week. Rising borrowing costs, fueled in part by congressional debates over fiscal policy, continue to place pressure on prospective homebuyers.

    Source: Reuters