U.S. Senator Mazie K. Hirono, alongside Senators Elizabeth Warren, Cory Booker, Bernie Sanders, and Tina Smith, has formally requested an explanation from the Department of Justice (DOJ) and the Federal Trade Commission (FTC) regarding their decision not to challenge Rocket Companies’ acquisition of Redfin. The lawmakers are concerned that this merger could potentially reduce consumer choice and lead to increased prices in the housing market.
The senators expressed their concerns in a letter addressed to DOJ Assistant Attorney General Gail Slater and FTC Chair Andrew Ferguson. They stated: “At a time when families already face a housing affordability crisis, 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, into a massive, vertically integrated conglomerate that may reduce choice and raise prices for American families in the housing market.”
Rocket Companies now controls significant portions of the homebuying process by acquiring Redfin and Mr. Cooper, which is the nation’s largest mortgage servicing firm. On May 8, 2025, the Trump Administration allowed the merger waiting period to expire without intervening to block or review it.
Post-merger completion, Rocket will be able to guide Redfin users towards its real estate agents and mortgages. This could limit business opportunities for local independent agents and discourage comparison shopping among homebuyers. Comparison shopping is shown to save an average of $76,410 over a 30-year mortgage.
“Rocket’s acquisition of Redfin and its data gives Rocket a degree of power against its customers that rival mortgage lenders will not have,” noted the senators.
By acquiring Mr. Cooper’s seven million clients, Rocket significantly expands its client base without needing to compete aggressively for new customers. The consolidation raises concerns about competition as Rocket now controls one-sixth of U.S. mortgages.
In previous actions against anticompetitive behavior by Rocket Companies, the Consumer Financial Protection Bureau (CFPB) sued them in 2024 for steering buyers towards higher-rate mortgages but dropped it after changes in leadership under President Trump.
The senators cited multiple DOJ and FTC merger enforcement guidelines raising concerns about consolidation trends within industries like housing. They concluded: “Rocket’s proposed acquisitions…create the potential for Rocket to steer homebuyers to its own products, hike prices based on private data, and block competition.”
The lawmakers have requested explanations from both agencies by June 17 regarding their decisions during premerger reviews.
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