Financial Data and Key Metrics Changes - The company reported a return on tangible common equity (ROTCE) of 16.8%, an increase from 15.8% in the previous quarter, reflecting the benefits from the Flagstar acquisition [8] - Net income for the quarter was $88 million, which included $255 million in pretax operating earnings offset by an $82 million negative mark on mortgage servicing rights (MSR) [28][30] - The capital ratio stood at 25.5%, indicating a strong balance sheet, with liquidity increasing to $3.9 billion [10][35] Business Line Data and Key Metrics Changes - The servicing segment generated pretax income of $332 million, up 22% year over year, attributed to slower than expected conditional prepayment rates (CPR) and lower amortization [15] - Originations produced $53 million in earnings before tax (EBT), slightly above guidance, with strong volumes in the correspondent channel [20] - Home equity loans and cash-out refinances showed significant growth, with cash-outs making up 46% of volume, up from 39% in the previous quarter [22] Market Data and Key Metrics Changes - The total portfolio decreased slightly to $1.5 trillion, with over 6.4 million customers, while the subservicing portfolio grew organically by 2% quarter over quarter [18][19] - The company closed approximately $7 billion in bulk acquisitions, indicating strong activity in the correspondent channel [20] Company Strategy and Development Direction - The pending combination with Rocket aims to create a scaled homeownership experience, leveraging technology and AI to enhance customer experience [4][5] - The integration of Flagstar is on schedule, with onboarding of new customers and team members completed [11][16] - The focus on operational excellence and customer trust is emphasized as a key driver for long-term growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for growth in home equity loans and cash-out refinances regardless of interest rate fluctuations [13][22] - The company is well-positioned to manage potential adverse market conditions, with strong asset quality and low delinquency rates [32][34] Other Important Information - The company incurred $26 million in transaction and transition charges related to the Flagstar integration and an additional $33 million charge for legal fees [29] - The hedge gains amounted to $209 million, contributing to stable and predictable results [31] - The company does not expect to repurchase stock prior to the closing of the Rocket transaction, anticipated in the fourth quarter of 2025 [37] Summary of Q&A Session - No questions were taken during the call due to the pending combination with Rocket, as stated by management [3]

Mr. Cooper Group Inc. (COOP) reported first-quarter 2025 adjusted earnings per share of $2.97, which beat the Zacks Consensus Estimate by 5.7%. The bottom line rose 30.3% year over year.Solid improvements in the Servicing and Originations segments were major tailwinds for the company in the fourth quarter. However, a decline in revenues and an increase in expenses were spoilsports.Net income of $88 million in the first quarter declined significantly from $181 million a year ago.COOP’s Revenues & ExpensesMr. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-14667 Mr. Cooper ...

Mr Cooper (COOP) came out with quarterly earnings of $2.97 per share, beating the Zacks Consensus Estimate of $2.81 per share. This compares to earnings of $2.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.69%. A quarter ago, it was expected that this reinsurance company would post earnings of $2.58 per share when it actually produced earnings of $2.73, delivering a surprise of 5.81%.Over the last four quarters, the comp ...

Financial Performance - Reported net income of $88 million for Q1 2025, down from $204 million in Q4 2024, with a return on common equity (ROCE) of 7.3% and operating return on tangible common equity (ROTCE) of 16.8%[7] - Total revenues for Q1 2025 were $560 million, compared to $654 million in Q4 2024, with operational revenue of $707 million, up from $672 million[6][19] - Total expenses increased to $430 million in Q1 2025 from $367 million in Q4 2024[19] - Net income for the quarter was $204 million, with diluted earnings per share at $3.13[27] - Operating income was reported at $178 million, with an operating ROTCE of 15.8%[28] - The company reported a pretax income of $280 million, with an income tax expense of $76 million[27] - Basic earnings per share for the quarter was $3.20, reflecting strong performance compared to previous periods[27] - The company experienced a decrease in ROCE to 7.3% from 17.3% in the previous quarter[31] - Total expenses for the quarter were $367 million, indicating effective cost management strategies[27] Servicing Segment - Servicing segment generated pretax income of $214 million, with a servicing portfolio of $1,514 billion, reflecting a 33% year-over-year growth[5][7] - The carrying value of mortgage servicing rights (MSR) was $11,345 million, equivalent to 155 basis points of MSR UPB[5][7] - Average UPB for the servicing portfolio was $1,531 billion, compared to $1,407 billion in the previous quarter[8] - The 60+ day delinquency rate improved to 1.5% at the end of Q1 2025, down from 1.6% in Q4 2024[8] Originations Segment - Originations segment earned pretax income of $45 million, funding 32,296 loans totaling approximately $8.3 billion in UPB, a 10% decrease quarter-over-quarter[9][10] - The company achieved a refinance recapture percentage of 51% in Q1 2025, up from 35% in Q4 2024[12] Strategic Developments - The company announced a combination with Rocket Companies to create an integrated homeownership platform[4][7] - The average stockholders' equity (BV) for the quarter was $4,852 million, showing growth from $4,726 million[31] - Average tangible book value (TBV) increased to $4,641 million, up from $4,553 million in the previous quarter[31] Gains on Mortgage Loans - The company recorded a net gain on mortgage loans held for sale of $117 million, contributing positively to overall revenues[27]

Wall Street analysts forecast that Mr Cooper (COOP) will report quarterly earnings of $2.81 per share in its upcoming release, pointing to a year-over-year increase of 23.3%. It is anticipated that revenues will amount to $612.37 million, exhibiting an increase of 8.6% compared to the year-ago quarter.Over the last 30 days, there has been an upward revision of 0.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of ...

Mr. Cooper Group Inc. (COOP) and Rocket Companies, Inc. (RKT) have jointly announced an agreement under which the former will be acquired by the latter in an all-stock deal valued at $9.4 billion. This will create a mortgage behemoth in the United States, with the combined firm servicing $2.1 trillion of loans and 9.5 million clients. The acquisition will also enhance RKT's data capabilities, adding nearly 7 million new clients and 150 million annual customer interactions. This expanded dataset will improve ...

Group 1 - Mr Cooper (COOP) shares increased by 14.5% to close at $119.60, following a notable trading volume, contrasting with a 7% loss over the past four weeks [1] - The surge in COOP shares is attributed to the announcement of an acquisition by Rocket Companies, Inc. (RKT) in an all-stock deal valued at $9.4 billion, creating a significant mortgage entity in the U.S. with $2.1 trillion in loans and 9.5 million clients [2] - Under the acquisition terms, COOP shareholders will receive 11 RKT shares for each COOP share, which is expected to enhance loan volume and client relationships, leading to increased recurring revenue and reduced client acquisition costs [3] Group 2 - Mr Cooper is projected to report quarterly earnings of $2.91 per share, reflecting a year-over-year increase of 27.6%, with revenues expected to reach $624.03 million, up 10.6% from the previous year [3] - The consensus EPS estimate for Mr Cooper has been revised 1.1% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [5] - Mr Cooper is categorized under the Zacks Financial - Consumer Loans industry, where another company, Ezcorp (EZPW), has shown a 0.3% increase in its stock price, closing at $14.72, with a 6.7% return over the past month [5]

Core Viewpoint - Mr. Cooper Group is set to be acquired by Rocket Companies in an all-stock deal valued at $9.4 billion, representing a significant consolidation in the mortgage industry [2][4]. Group 1: Acquisition Details - The acquisition values Mr. Cooper Group at $143.33 per share, which is a 35% premium over its 30-day average weighted share price [2]. - Shareholders of Mr. Cooper Group will receive a $2 cash dividend per share before the deal closes, expected in the fourth quarter of this year [2]. - Post-acquisition, Mr. Cooper Group's chairman and CEO, Jay Bray, will take on the same roles at Rocket Mortgage, with two additional members from Mr. Cooper Group joining Rocket's board [3]. Group 2: Financial Implications - The deal is projected to be immediately accretive to earnings, with expected growth in 2026 earnings in the mid-teens percentage-wise [3]. - Rocket anticipates incurring $500 million in acquisition-related expenses while achieving annual pretax cost savings between $400 million and $500 million [3]. Group 3: Market Context - Rocket Companies is actively consolidating the fragmented mortgage industry, having recently acquired Redfin for $1.75 billion [4]. - Following the acquisition of Mr. Cooper Group, Rocket will control one out of every six mortgages in the U.S. [4]. Group 4: Company Performance - Despite high interest rates negatively impacting the mortgage sector, Mr. Cooper Group's stock has surged 2,146% over the past five years, making it a strong performer in the market [5]. - As the largest mortgage servicer in the U.S., Mr. Cooper Group benefits from fewer refinances due to high rates, which enhances the value of mortgage servicing rights [5].

Short interest has been building, up 23.2% in the last month. With these shorts now underwater, a round of short covering could be providing additional tailwinds. Consumer lending stock Mr. Cooper Group Inc (NASDAQ:COOP) is surging today, up 18% at $123.30 at last glance, after news that fintech firm Rocket Companies (RKT) is acquiring the company for $9.4 billion in an all-stock deal as it looks to expand its mortgage-related offerings. RKT is moving lower after the news, down 7.8% at last glance. On the c ...