Brookfield takes controlling stake in Angel Oak

Plus: Rocket to Buy Mr. Cooper Group for $9.4 Billion

April 02, 2025

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Disclaimer: Average mortgage rates as of April 01, 2025. © MND Daily Rate Index.

1. Brookfield takes controlling stake in Angel Oak

Brookfield Asset Management Ltd. agreed to purchase a 50.1% stake in Angel Oak Companies, a lender specializing in non-qualified mortgages (non-QM) that manages over $18 billion in mortgage assets.

Angel Oak, founded in 2008, owns Angel Oak Mortgage Solutions, known for lending to self-employed borrowers, and Angel Oak Capital Advisors, its asset management arm. Co-founders Sreeni Prabhu and Mike Fierman will continue as co-CEOs, with Angel Oak operating independently post-acquisition.

Brookfield CEO Craig Noble said Angel Oak's capabilities complement Brookfield's credit business, providing opportunities to expand relationships with institutional investors. The deal is expected to close by the third quarter of 2025.

2. Rocket to Buy Mr. Cooper Group for $9.4 Billion

Rocket is spending more than $9 billion to buy mortgage servicing giant Mr. Cooper in an all-stock deal for $9.4 billion in equity, the companies announced Monday.

The combined company would service about one in every six U.S. mortgages, Rocket said when announcing the deal. The acquisition would be one of the mortgage industry’s largest ever.

Rocket, the third-largest U.S. mortgage lender, has been trying to grow its market share by streamlining the home-buying process. Rocket announced a deal earlier in March to buy Redfin in an all-stock deal that valued the real-estate brokerage at $1.75 billion.

“Home search, brokerage, financing, title, closing and servicing should be seamless, but today they’re not. If we truly want to fix that, we have to own the client experience from beginning to its true end.”

Varun Krishna, Rocket’s CEO

In related news: A&D Mortgage closes acquisition of Mr. Cooper's 3rd-party channel.

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3. More Nuggets

🏘️ Baby boomers retake lead from millennials as top homebuyers. (NAR)

📉 Lowest mortgage rates in nearly a month. (Mortgage News Daily)

🎥 Trump says TikTok sale deal to come before Saturday deadline. (Reuters)

🏦 HomeStreet to merge with California’s Mechanics Bank. (BankingDive)

💻 HUD launches new website, cuts 90% of its website content. (HUD)

4. Compass broker accused of taking kickbacks

A Compass broker faces allegations of illegally accepting kickbacks from a mortgage lender and a lawyer in exchange for client referrals, according to a whistleblower lawsuit.

Ben Lalez is accused of violating federal anti-kickback laws by steering clients to specific service providers in exchange for undisclosed cash payments. The suit, filed in January by his former transaction manager Claude Cimino, claims Lalez retaliated by firing him after he reported the alleged scheme.

The complaint alleges that Lalez received cash payments for referring clients to a particular lender and attorney, violating the Real Estate Settlement Procedures Act (RESPA).

In related news: Compass clients solicit class action suit against NWMLS

5. Mortgage applications slip as borrowers remain cautious

Mortgage rates have barely budged in the last month. That, and a broader concern among consumers about the state of the economy, has also kept mortgage demand muted.

  • Total mortgage application volume dropped 1.6% last week compared with the previous week, according to the MBA’s seasonally adjusted index.

  • Applications to refinance a home loan dropped 6% for the week and were 57% higher than the same week one year ago.

  • Applications for a mortgage to purchase a home rose 2% for the week and were 9% higher than the same week a year ago.

“Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook”

Joel Kan, vice president and deputy chief economist at the MBA.

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☀️ You’re all caught up. See you on Friday!

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