$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 ...

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 September 30, 2023 or Mr. Cooper Group Inc. (Exact name of registrant as specified in its charter) Delaware 91-1653725 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Ident ...

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 ...

Financial Performance - The company reported a 300 basis point gain in operating ROTCE, reaching 11.7%, and an increase in tangible book value per share to $58.81 [2][4] - Capital and liquidity remain at near-record levels, with a capital ratio of 30% as measured by tangible net worth to assets [30] Capital Management - The company repurchased 1.2 million shares for $57 million, totaling 31% of shares repurchased since inception, with an additional $200 million repurchase authorization approved by the board [3] Servicing Performance - The servicing segment achieved a record $182 million in pre-tax operating income, prompting a 17% increase in full-year guidance for operating income from $600 million to $700 million [6][19] - The portfolio reached $882 billion, with expectations to hit the $1 trillion target by year-end, accelerated by pending transactions [7][19] Strategic Initiatives - The company is focused on driving efficiencies through automation and enhancing the DTC platform, which is highly profitable and aims to contribute more significantly to overall results [12][17] - The company is also expanding its self-servicing business and preparing to launch an MSR fund later this year [12][15] Market Conditions and Future Outlook - Management noted a cautious outlook regarding the impact of the end of student loan forgiveness on borrowers, with 16% of customers having outstanding student loans [16] - The company is optimistic about the potential for creating shareholder value and achieving higher returns on equity as it executes its strategic plan [4][54] Other Important Information - The company has seen a significant improvement in its internal DTC purchase recapture, with refinance recapture rates at 80%, nearly four times the industry average [42] - The integration of the Rushmore Servicing acquisition is ongoing, with expectations for it to enhance the company's capabilities in managing delinquent portfolios [126][134] Q&A Session Summary Question: Expectations for prepay speeds going into the back half of the year - Management expects prepay speeds to be slightly up, with a long-term range of 12% to 20% being reasonable [34][58] Question: Insights on the origination side and gain on sale margin - The decrease in gain on sale margin is attributed to a mix shift, with expectations for margins to improve as efficiencies from Project Flash are realized [38][40] Question: Impact of the HomePoint acquisition on servicing revenues - The HomePoint acquisition is expected to contribute positively, with onboarding planned for late 2023 or early 2024 [125][97] Question: Financing expectations for MSR transactions - The company has established strong financing partnerships and does not anticipate needing seller financing for MSR purchases [70][91] Question: Future growth of the DTC platform - The DTC platform is expected to grow in line with portfolio growth, with more inventory leading to more opportunities for originations [106][107]

[Report Overview](index=1&type=section&id=Cover%20Page) This document is the Quarterly Report on Form 10-Q for Mr. Cooper Group Inc. for the quarterly period ended June 30, 2023 - This document is the Quarterly Report on Form 10-Q for Mr. Cooper Group Inc. for the quarterly period ended June 30, 2023[67](index=67&type=chunk)[80](index=80&type=chunk) - The company's common stock is traded on The Nasdaq Stock Market under the symbol **COOP**[67](index=67&type=chunk) - As of July 20, 2023, **66,848,546** shares of common stock were outstanding[439](index=439&type=chunk) [PART I: FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Mr. Cooper Group Inc. as of and for the periods ended June 30, 2023, and 2022, along with detailed notes on accounting policies and financial details [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$13.14 billion** as of June 30, 2023, from **$12.78 billion** at year-end 2022, primarily driven by a rise in Mortgage Servicing Rights (MSRs) and Advance, warehouse and MSR facilities, with total liabilities also growing to **$9.07 billion** from **$8.72 billion** Condensed Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $517 | $527 | | Mortgage servicing rights at fair value | $7,149 | $6,654 | | **Total assets** | **$13,144** | **$12,776** | | **Liabilities** | | | | Advance, warehouse and MSR facilities, net | $3,512 | $2,885 | | Unsecured senior notes, net | $2,676 | $2,673 | | **Total liabilities** | **$9,065** | **$8,719** | | **Total stockholders' equity** | **$4,079** | **$4,057** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2023, net income was **$142 million** ($2.07 diluted EPS), compared to **$151 million** ($2.03 diluted EPS) in Q2 2022, while six-month net income significantly decreased to **$179 million** in 2023 from **$809 million** in 2022 due to prior-year gains Consolidated Statement of Operations Summary (in millions, except per share data) | Metric | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $486 | $599 | $816 | $1,651 | | Total expenses | $278 | $328 | $539 | $666 | | **Net income** | **$142** | **$151** | **$179** | **$809** | | **Diluted EPS** | **$2.07** | **$2.03** | **$2.57** | **$10.74** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2023, net cash from operating activities sharply decreased to **$149 million** from **$2,582 million** in the prior-year period, while investing activities used **$576 million** and financing activities provided **$412 million** Net Cash Flow Summary (in millions) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Operating activities | $149 | $2,582 | | Investing activities | ($576) | ($885) | | Financing activities | $412 | ($2,109) | | **Net decrease in cash** | **($15)** | **($412)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant corporate activities, including acquisitions and a change in MSR valuation method, alongside accounting policies and breakdowns of key financial instruments and segment data - In Q2 2023, the company acquired certain assets from Rushmore Loan Management Services for **$34 million**, accounted for as an asset acquisition[91](index=91&type=chunk) - The company entered into a merger agreement to acquire Home Point Capital Inc. in May 2023, with the transaction expected to close in Q3 2023[113](index=113&type=chunk) - Beginning in Q2 2023, the company changed its valuation method for MSRs and excess spread financing from a static discount rate to a stochastic Option Adjusted Spread (OAS) model[175](index=175&type=chunk)[202](index=202&type=chunk)[126](index=126&type=chunk) MSR Portfolio by Investor Pool (in millions) | Investor Pool | UPB (June 30, 2023) | Fair Value (June 30, 2023) | | :--- | :--- | :--- | | Agency | $431,876 | $6,848 | | Non-agency | $27,600 | $301 | | **Total** | **$459,476** | **$7,149** | [Management's Discussion and Analysis (MD&A)](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, strategic initiatives, and market trends, providing a detailed breakdown of segment results and an analysis of liquidity and capital resources - Strategic priorities include growing the servicing portfolio to **$1 trillion** in UPB, achieving a **60%** refinance recapture rate, and strengthening the balance sheet[251](index=251&type=chunk) - The company anticipates continued strong earnings from the Servicing segment, supported by portfolio growth, including the pending acquisition of Home Point Capital's **$84 billion** UPB portfolio[224](index=224&type=chunk) - The Originations segment is expected to operate at lower profitability levels in the second half of the year due to high mortgage rates and seasonality[252](index=252&type=chunk) [Servicing Segment Results](index=33&type=section&id=Segment%20Results%20-%20Servicing) The Servicing segment's income before tax was **$243 million** in Q2 2023, up from **$226 million** in Q2 2022, driven by a larger portfolio of **$882 billion** UPB, despite lower mark-to-market gains on MSRs Servicing Segment Performance (in millions) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Total revenues | $368 | $395 | | Total expenses | $159 | $143 | | **Income before tax** | **$243** | **$226** | - The total servicing portfolio UPB increased to **$882.0 billion** at June 30, 2023, from **$803.6 billion** at June 30, 2022[292](index=292&type=chunk) - 60+ day delinquency rates improved, decreasing to **2.0%** of loans at June 30, 2023, compared to **2.7%** at June 30, 2022[317](index=317&type=chunk) [Originations Segment Results](index=42&type=section&id=Segment%20Results%20-%20Originations) The Originations segment reported income before tax of **$38 million** in Q2 2023, down from **$62 million** in Q2 2022, primarily due to lower funded volume of **$3.8 billion** amidst high interest rates, though refinance recapture rate increased to **79.9%** Originations Segment Performance (in millions) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Total revenues | $97 | $182 | | Total expenses | $59 | $125 | | **Income before tax** | **$38** | **$62** | Originations Key Metrics (in millions) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Funded volume | $3,822 | $7,767 | | Recapture percentage | 23.5% | 29.2% | | Refinance recapture % | 79.9% | 59.7% | [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company held **$517 million** in cash and cash equivalents with **$10.75 billion** in total available borrowing capacity, having repurchased **3.3 million** shares for **$146 million** during the first six months of 2023, while remaining in compliance with all financial covenants - Cash and cash equivalents were **$517 million** as of June 30, 2023, with total available borrowing capacity of **$10.75 billion**, and **$1.78 billion** immediately available[3](index=3&type=chunk) - During the first six months of 2023, the company repurchased **3.3 million** shares of common stock for a total cost of **$146 million**[3](index=3&type=chunk)[109](index=109&type=chunk) - The company was in compliance with its seller/servicer financial requirements for FHFA and Ginnie Mae as of June 30, 2023[373](index=373&type=chunk)[339](index=339&type=chunk) [Market Risk Disclosures](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, which affects MSRs, mortgage loans, and derivatives, leading to an increased MSR hedge ratio to **75%** as of June 30, 2023, with a hypothetical 25 basis point rate increase resulting in a **$4 million** net decrease in fair value - The company increased its target hedge ratio on the net duration risk of its MSR portfolio from **25%** at year-end 2022 to a target of **75%** as of June 30, 2023, to mitigate risk in a declining rate environment[421](index=421&type=chunk) Interest Rate Sensitivity Analysis (in millions) | Hypothetical Rate Change | Change in Fair Value of Assets | Change in Fair Value of Liabilities | Net Change | | :--- | :--- | :--- | :--- | | Down 25 bps | ($72) | ($69) | ($3) | | Up 25 bps | $64 | $68 | ($4) | [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that as of June 30, 2023, the company's disclosure controls and procedures are effective at a reasonable assurance level[58](index=58&type=chunk) - No changes occurred in the company's internal control over financial reporting during the three months ended June 30, 2023, that have materially affected or are likely to materially affect internal controls[37](index=37&type=chunk) [PART II: OTHER INFORMATION](index=59&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, with management estimating an aggregate reasonably possible loss of **$2 million to $4 million** in excess of accrued liabilities as of June 30, 2023, not expecting a material adverse effect on financial position - The company recorded legal-related expenses of **$12 million** and **$21 million** for the three and six months ended June 30, 2023, respectively[185](index=185&type=chunk) - Management estimates the aggregate range of reasonably possible loss for legal matters is **$2 million to $4 million** in excess of any accrued liability as of June 30, 2023[185](index=185&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes or additions to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to risk factors from the Annual Report on Form 10-K for the year ended December 31, 2022 have been reported[404](index=404&type=chunk) [Share Repurchases](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2023, the company repurchased **1.212 million** shares for **$57 million**, with **$67 million** remaining under the October 2022 authorization, and an additional **$200 million** authorized in July 2023 Share Repurchases for Q2 2023 (in thousands, except price) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2023 | 0 | $0.00 | | May 2023 | 616 | $45.46 | | June 2023 | 596 | $48.54 | | **Total** | **1,212** | N/A | - In July 2023, the Board of Directors authorized an additional **$200 million** for the company's stock repurchase program[428](index=428&type=chunk) [Other Information](index=59&type=section&id=Item%205.%20Other%20Information) On June 14, 2023, Chairman and CEO Jay Bray entered into a pre-arranged stock trading plan (Rule 10b5-1) to sell up to **300,000** shares of company common stock between September 2023 and September 2024 - CEO Jay Bray entered into a Rule 10b5-1 trading plan to sell up to **300,000** shares of common stock[430](index=430&type=chunk) [Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including various loan and security agreements, amendments, and officer certifications - Exhibits filed include the Agreement and Plan of Merger with Home Point Capital Inc., various amended loan and security agreements, and certifications by the CEO and CFO[431](index=431&type=chunk)[64](index=64&type=chunk) [Glossary of Terms](index=51&type=section&id=GLOSSARY%20OF%20TERMS) [Glossary](index=51&type=section&id=Glossary) This section provides definitions for industry-specific and company-specific terms used throughout the report, such as Mortgage Servicing Right (MSR), Unpaid Principal Balance (UPB), Ginnie Mae (GNMA), Fannie Mae (FNMA), and various types of servicing advances and loan products - Defines Mortgage Servicing Right (MSRs) as the right and obligation to service a loan and receive a servicing fee[48](index=48&type=chunk) - Defines Servicing Advances as funds advanced by the servicer for principal, interest, taxes, and insurance on behalf of borrowers, which are reimbursable[30](index=30&type=chunk)[419](index=419&type=chunk) - Defines Unpaid Principal Balance (UPB) as the amount of principal outstanding on a mortgage loan, used to estimate future revenue for a servicer[397](index=397&type=chunk)

Mr. Cooper Group Inc. (NASDAQ:COOP) Q1 2023 Earnings Conference Call April 26, 2023 10:00 AM ET Company Participants Ken Posner - Senior Vice President of Strategic Planning and Investor Relations Jay Bray - Chairman and Chief Executive Officer Christopher Marshall - Vice Chairman and President Kurt Johnson - Executive Vice President and Chief Financial Officer Conference Call Participants Kevin Barker - Piper Sandler & Co. Douglas Harter - Credit Suisse AG Giuliano Bologna - Compass Point Research & Tradin ...

1Q'23 EARNINGS REVIEW April 26, 2023 Non-GAAP Measures. This presentation contains certain references to nonGAAP measures. Please refer to the Appendix for more information on nonGAAP measures. BALANCED BUSINESS MODEL PROVIDES STABILITY DURING VOLATILE MARKETS 6.3% 1.3% 4.3% 4 | This presentation contains summarized information concerning Mr. Cooper Group Inc. ("Mr. Cooper" or the "Company") and the Company's business, operations, financial performance and trends. No representation is made that the informat ...

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, 2023 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 | --- | --- ...

☐ 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: 001-35449 _____________________________________________________________________________________________________________ Common Stock, $0.01 par value per share COOP The Nasdaq Stock Market Title of each class Trading Symbol(s) Name of each exchange on which registered Portions of our definitive Proxy Statement, to be filed with the Securities and Exchange Commi ...

Mr. Cooper Group Inc. (NASDAQ:COOP) Q4 2022 Earnings Conference Call February 10, 2023 10:00 AM ET Company Participants Ken Posner - Senior Vice President of Strategic Planning and Investor Relations Jay Bray - Chairman and Chief Executive Officer Chris Marshall - Vice Chairman and President Jaime Gow - Executive Vice President and Chief Financial Officer Conference Call Participants Kevin Barker - Piper Sandler Eric Hagen - BTIG Giuliano Bologna - Compass Point Douglas Harter - Credit Suisse Mike Smith - K ...