Competitive EnvironmentBlend's largest customer is getting bought by an indirect competitor in the form of a non-bank lender who views technology as 'the bedrock of its investment strategy,' and thus competes with Blend's software.
Regulatory RisksThe RKT/COOP deal is likely to receive regulatory scrutiny from the FTC.
Revenue HeadwindWhile the acquisition of Mr. Cooper by Rocket does means a bit of a revenue headwind looking out to 2028, short term, this deal can only be a wake-up call for traditional mortgage lenders and servicers.