The upcoming report from Mr Cooper (COOP) is expected to reveal quarterly earnings of $1.37 per share, indicating an increase of 59.3% compared to the year-ago period. Analysts forecast revenues of $398.31 million, representing an increase of 31.5% year over year.The current level reflects a downward revision of 7.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this peri ...

The market expects Mr Cooper (COOP) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

DALLAS--(BUSINESS WIRE)--Mr. Cooper Group Inc. (NASDAQ: COOP) (“Mr. Cooper”) announced the pricing of an offering by Nationstar Mortgage Holdings Inc., a direct wholly-owned subsidiary of Mr. Cooper (“Nationstar”), of $1,000,000,000 7.125% Senior Notes due 2032 (the “Notes”). The Notes will bear interest at 7.125% per annum and will mature on February 1, 2032. Interest on the Notes will be payable semi-annually on February 1 and August 1 of each year, beginning on August 1, 2024. The offering is expected t ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Mr Cooper (COOP) , which belongs to the Zacks Financial - Consumer Loans industry.This reinsurance company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 48.67%.For the last reported quarter, Mr Cooper came out with earnings of $2 ...

DALLAS--(BUSINESS WIRE)--Mr. Cooper Group Inc. (NASDAQ: COOP) will discuss its financial results for the fourth quarter 2023 on February 9, 2024 at 10:00 A.M. Eastern Time. A copy of the press release and investor presentation will be posted prior to the call under the investors section on Mr. Cooper Group’s website, www.mrcoopergroup.com. Pre-registration for the call is now open by following the registration link here. Participants will receive a toll-free dial-in number and a unique registrant ID to be u ...

DALLAS--(BUSINESS WIRE)--Mr. Cooper Group Inc. (NASDAQ: COOP) announced today the appointment of Mike Weinbach as President, effective February 1, 2024, with responsibility for leading the Company’s operations, including Originations, Servicing and Technology. With more than 25 years' experience in the financial services industry, Weinbach has a track record of senior leadership roles across consumer and mortgage banking. Most recently, he served as CEO of Consumer Lending for Wells Fargo and as a member ...

Financial Data and Key Metrics Changes - Tangible book value increased to $62.78, reflecting strong operating results and gains from the Home Point acquisition [3][4] - Operating ROTCE was reported at 13.8%, indicating a return to the target range [112] - Servicing generated $301 million in pretax income, including a one-time gain of $67 million from the trust collapse [30][113] Business Line Data and Key Metrics Changes - Servicing income is projected to remain stable, with expectations of marginally higher profitability throughout 2024 due to scale and efficiencies [134] - Originations reported EBT of $29 million, which is considered excellent given the current rate environment [113] - Xome experienced a 17% sequential growth in sales, generating a profit of approximately $2 million [12] Market Data and Key Metrics Changes - The mortgage market share held by banks has decreased to around 40%, creating growth opportunities for the company [114] - The portfolio reached $937 billion, up 10% year-over-year, with expectations of continued growth in 2024 [102][118] Company Strategy and Development Direction - The company aims to exceed its $1 trillion strategic target in the first quarter of next year, with plans to update strategic targets thereafter [28] - Focus on technology investments and cost leadership in servicing and originations, as well as winning new subservicing clients [119][123] - The company is preparing for larger acquisitions and has a strong appetite for significant deals in the market [74] Management's Comments on Operating Environment and Future Outlook - Management expects higher interest rates to persist, which is favorable for servicing operations [122] - The company is monitoring high yield debt issuance and considering options for capital deployment based on favorable market conditions [130] - Delinquency rates are anticipated to increase slightly, but the overall credit environment is not expected to be materially adverse [106] Other Important Information - The company has a strong capital position with a capital ratio of 31% and plans to deploy some of this capital into asset growth [39] - The Home Point acquisition added $700 million in capacity, with $385 million drawn down to fund the acquisition [94] - The company has received recognition as one of the best workplaces in financial services, reflecting its commitment to a positive work environment [27] Q&A Session Summary Question: Is the mid-teens run rate on return on equity achievable by mid-next year? - Management indicated that while specific guidance is not provided, they expect ROTCE to improve along similar lines due to operational efficiencies [41] Question: What are the seasonal components affecting servicing income in the fourth quarter? - Management noted that seasonality is primarily due to float income as taxes and insurance are paid, along with other seasonal factors [23][46] Question: What is the target for the MSR fund and its fee structure? - The company is targeting a $1 billion fund and hopes to close it by the end of the first quarter, with further details to be provided as progress is made [58] Question: How does the company plan to handle larger acquisitions? - Management expressed a strong appetite for large deals and indicated that they are well-prepared operationally to take on significant volumes [74] Question: What is the outlook for delinquency rates given the current interest rate environment? - Management anticipates a slight increase in delinquency rates but does not expect a material adverse impact on the company [106]

$17 $198 Change in unrestricted cash $36 ⁽¹⁾ Based on marginal tax rate of 3.2%, net of federal benefit. Actual tax payments/refunds included in total working capital changes ⁽²⁾ Includes mortgage loans originated, sold or repurchased, net gains on mortgage loans held for sale excluding capitalized servicing rights, repayment of nonrecourse debt – legacy assets, and changes in warehouse facilities, advance facilities, advances and other receivables, other assets, payables and other liabilities, taxes, and o ...

Financial Performance - The Servicing segment generated income before income tax expense of $361 million in Q3 2023, with expectations to reach a $1 trillion UPB target early next year [60]. - The Originations segment generated income before income tax expense of $29 million on funded volume of $3,412 million in Q3 2023, with lower profitability expected in Q4 2023 due to seasonal factors [61]. - The company reported income before income tax expense of $585 million for the nine months ended September 30, 2023 [84]. - Net income for the nine months ended September 30, 2023, was $454 million, a decrease of 50.8% compared to $922 million for the same period in 2022 [85]. - The Company recorded net income of $275 million for the three months ended September 30, 2023, compared to $113 million for the same period in 2022 [168]. - Total revenues for the three months ended September 30, 2023, were $574 million, an increase of 12.5% from $510 million in the same period of 2022 [92]. - Operational revenues increased to $511 million for the three months ended September 30, 2023, up from $386 million in 2022, reflecting a change of 32.8% [92]. - The Company reported a total of $1,095 million in service-related revenues for the nine months ended September 30, 2023, compared to $1,610 million for the same period in 2022, indicating a decline of 32% [124]. Assets and Liabilities - Total assets as of September 30, 2023, were $13,427 million, with servicing segment assets at $10,916 million [84]. - As of September 30, 2023, the fair value of mortgage servicing rights (MSRs) was $8.504 billion, up from $6.654 billion as of December 31, 2022 [110]. - The total fair value of MSRs included $501.315 billion from agency investors and $27.009 billion from non-agency investors as of September 30, 2023 [115]. - The Company had mortgage loans held for sale with an unpaid principal balance (UPB) of $932 million as of September 30, 2023, compared to $921 million as of December 31, 2022 [135]. - The total advances and other receivables, net, decreased to $758 million as of September 30, 2023, from $1,019 million as of December 31, 2022 [125]. - The Company recorded a total expected credit loss (CECL) reserve of $36 million as of September 30, 2023, slightly up from $34 million as of September 30, 2022 [132]. Expenses and Costs - Total expenses for the nine months ended September 30, 2023, were $840 million, with servicing segment expenses at $484 million [84]. - Total expenses for the three months ended September 30, 2023, were $301 million, a decrease of 4.7% from $316 million in 2022 [92]. - Legal-related expenses for Q3 2023 were recorded at $8 million, with a total of $29 million for the nine months ended September 30, 2023 [72]. - Interest expense related to advance, warehouse, and MSR facilities, unsecured senior notes, and excess spread financing was $131 million for the three months ended September 30, 2023, compared to $90 million for the same period in 2022 [156]. Acquisitions and Investments - The Company acquired certain assets of Rushmore Loan Management Services for a total purchase price of $34 million in the second quarter of 2023 [102]. - The Company acquired Roosevelt Management Company for a total purchase price of $28 million, recording $4 million of intangible assets and $21 million of goodwill [103]. - The acquisition of Home Point Capital Inc. closed in Q3 2023 for approximately $658 million, with a bulk purchase of mortgage servicing rights for $335 million and a tender offer for $323 million [104][105]. - The Company recorded a preliminary bargain purchase gain of $96 million from the Home Point transaction, reflecting the excess of estimated fair value of net assets acquired over consideration transferred [105]. - The Company incurred $8 million in acquisition costs related to the Roosevelt transaction and $5 million for the Home Point transaction during the nine months ended September 30, 2023 [103][105]. Market Conditions and Strategy - The company anticipates favorable market conditions for acquisitions and bulk purchases due to macroeconomic factors [60]. - The company aims to achieve a refinance recapture rate of 60% and maintain a return on tangible equity of 12% or higher [62]. - The target hedge ratio on mortgage servicing rights (MSR) hedge position increased from 25% to 75% to mitigate risks in a declining interest rate environment [335]. Financial Instruments and Derivatives - The total outstanding notional balances for derivative financial instruments amounted to $6.252 billion, with total assets valued at $2.322 billion and total liabilities at $3.930 billion [145][150]. - The Company recorded a net gain of $74 million on forward MBS trades, while total gains from derivative financial instruments amounted to $36 million [145][146]. - The Company experienced a loss of $293 million in total derivative financial instruments liabilities, primarily due to changes in fair value [145][146]. - The weighted average interest rate for advance facilities increased to 7.8% for the three months ended September 30, 2023, compared to 4.5% for the same period in 2022 [153]. Compliance and Governance - The company is in compliance with its selling and servicing capital requirements as of September 30, 2023 [69]. - The Company was in compliance with its required financial covenants as of September 30, 2023 [157].

1 | 2Q'23 EARNINGS REVIEW July 26, 2023 Forward-looking statements may include the words "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "strategy," "future," "opportunity," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks ...