Acquisition ImpactWhile the acquisition of Mr. Cooper by Rocket does mean 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.
Competitive EnvironmentRisks to the thesis include changes in the competitive environment, limited visibility into business forecasting of origination volumes, and general execution.
Customer Revenue DependenceBlend'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.