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, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANG ...

Mr. Cooper Group, Inc. (NASDAQ:COOP) Q2 2022 Earnings Conference Call July 27, 2022 10:00 AM ET Company Participants Kenneth Posner - SVP, Strategic Planning and Investor Relations Jay Bray - Chairman and CEO Chris Marshall - Vice Chairman and President Jaime Gow - EVP and CFO Conference Call Participants Kevin Barker - Piper Sandler Bose George - KBW Jay McCanless - Wedbush Giuliano Bologna - Compass Point Kyle Joseph - Jefferies Lee Cooperman - Omega Family Office Operator Good day and thank you for stand ...

1 | 2Q'22 EARNINGS REVIEW July 27, 2022 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 information in this presentation is complete. For additional financial, statistical and business related information, as well as information regarding business and segment trends, see the Company's most recent Annual Report on Form 10-K ("Form 10-K ...

Financial Performance - Mr. Cooper Group reported a fair value of mortgage servicing rights (MSRs) at $6,151 million as of June 30, 2022, up from $4,223 million at December 31, 2021, reflecting a significant increase of 45.7%[34]. - The company recorded net income from discontinued operations of $12 million for the three months ended June 30, 2021[31]. - Net income from continuing operations for the three months ended June 30, 2022, was $151 million, compared to $427 million for the same period in 2021, representing a decrease of 64.7%[78]. - The company reported net income attributable to common stockholders of $151 million for the three months ended June 30, 2022, compared to $435 million for the same period in 2021, a decrease of 65.3%[78]. - Total revenues amounted to $1,651 million for the six months ended June 30, 2022, with servicing revenues contributing $1,111 million and originations generating $506 million[115]. - Total revenues for the Originations segment decreased to $182 million for the three months ended June 30, 2022, down from $430 million in the same period in 2021, a decline of $248 million[191]. - Total revenues for the six months ended June 30, 2022, decreased to $506 million, down from $1,025 million in 2021, representing a decline of $519 million[202]. Asset and Liability Management - The company’s total assets related to retained loans as of June 30, 2022, were $34 million, down from $55 million as of December 31, 2021[30]. - The company’s total liabilities related to retained loans as of June 30, 2022, were $26 million, down from $39 million as of December 31, 2021[30]. - The total outstanding notional balances for derivative financial instruments amounted to $4,256 million as of June 30, 2022, with recorded gains of $360 million[61]. - The company recognized a total of $2,860 million in liabilities related to derivative financial instruments as of June 30, 2022, with losses of $216 million[61]. - The company reported total assets of $403 million and total liabilities of $301 million related to transactions with variable interest entities (VIEs) as of June 30, 2022[3]. - The company’s advance facilities principal amount outstanding was $523 million as of June 30, 2022, compared to $671 million as of December 31, 2021[1]. - The company’s warehouse facilities principal amount outstanding was $1,939 million as of June 30, 2022, down from $4,125 million as of December 31, 2021[1]. Revenue and Expense Analysis - Total expenses for the same period were $666 million, with servicing expenses at $266 million and originations expenses at $300 million[115]. - Total expenses for the three months ended June 30, 2022, were $328 million, a decrease of $97 million from $425 million in the same period in 2021[131]. - Total expenses for the Originations segment decreased to $126 million in Q2 2022 from $226 million in Q2 2021, a reduction of $100 million[191]. - The company incurred interest expense of $90 million and $176 million for the three and six months ended June 30, 2022, respectively[1]. - The company reported total other income (expenses), net of $(66) million for the three months ended June 30, 2022, compared to $418 million in 2021, a decrease of $484 million[131]. Market and Operational Insights - The servicing portfolio expanded from $10 billion in 2009 to $804 billion as of June 30, 2022, reflecting significant growth[125]. - The company anticipates challenges in maintaining or growing its servicing portfolio and originations volume due to economic disruptions[120]. - The company achieved a refinance recapture rate of 60% in the second quarter of 2022 and expects continued strong performance in this area[128]. - The company faced ongoing legal proceedings related to various consumer protection laws, which could impact its financial condition and operations[94]. - The company acknowledges that the claims process for servicing rights can be prolonged, impacting cash flows and operating results[105]. Shareholder and Stock Activity - The company repurchased a total of 14.8 million shares of its common stock in 2021, eliminating KKR's equity interests in the company[76]. - The company bought back 3.0 million shares of its outstanding common stock for a total cost of $135 million as part of its stock repurchase program[210]. Legal and Compliance Matters - Legal-related expenses for the three months ended June 30, 2022, were $10 million, compared to $8 million for the same period in 2021[100]. - The estimated range of reasonably possible loss related to legal matters was between $4 million to $7 million as of June 30, 2022[101]. - The company was in compliance with its required financial covenants as of June 30, 2022[1]. - The company maintained compliance with its selling and servicing capital requirements as of June 30, 2022[93]. Mortgage Servicing Rights (MSRs) Specifics - The fair value of MSRs increased by $1,124 million due to changes in valuation inputs or assumptions during the six months ended June 30, 2022[34]. - The average life of mortgage servicing rights was reported at 7.9 years, compared to 5.8 years previously[89]. - The fair value of mortgage loans held for sale was $2,072 million as of June 30, 2022, down from $4,381 million as of December 31, 2021[84]. - The fair value of excess spread financing decreased from $934 million at the beginning of the period to $532 million at the end of the period, reflecting a reduction of $402 million[185]. - The MSR UPB increased to $397,387 million as of June 30, 2022, compared to $406,231 million in June 30, 2021, reflecting a net change in loans serviced by others[172].

1 | 1Q'22 EARNINGS REVIEW April 28, 2022 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 information in this presentation is complete. For additional financial, statistical and business related information, as well as information regarding business and segment trends, see the Company's most recent Annual Report on Form 10-K ("Form 10- ...

Financial Data and Key Metrics Changes - The company reported a strong net income of $658 million for Q1 2022, leading to a tangible book value increase to $52.01 per share, a 62% year-over-year gain [6][57] - The return on tangible equity (ROTCE) was 74% on a GAAP basis, while the operating return was 8%, below the target range of 12% to 20% [8] - The capital ratio at the end of Q1 was 27% of assets, with cash and liquidity remaining strong [12][66] Business Line Data and Key Metrics Changes - Servicing contributed $7 million in pre-tax income, while originations contributed $157 million [9] - The servicing portfolio grew to $796 billion, up 12% sequentially and 27% year-over-year [35] - Cash-out refinances accounted for 64% of total production in March, indicating a shift in customer needs [27] Market Data and Key Metrics Changes - The mortgage rates hovered around 5%, with the percentage of customers eligible for rate term refinance in the low single digits, marking a challenging environment for the industry [23] - The company expects a significant reduction in origination volumes, projecting quarterly EBT in the range of $65 million to $85 million on funded volume of around $7 billion to $8 billion [25] Company Strategy and Development Direction - The company aims to benefit from higher interest rates through its servicing portfolio, projecting at least $100 million per quarter in pre-tax income from servicing by the end of the year [13] - The focus is on capital allocation, with a shift from MSR acquisitions to stock repurchases due to the stock trading below book value [11][18] - The company is committed to improving customer experience and driving higher returns in 2023 and beyond [14] Management's Comments on Operating Environment and Future Outlook - The management highlighted the volatility in the first quarter due to geopolitical tensions and inflation, which has led to a severe retrenchment in the originations industry [4][5] - They expect servicing profitability to improve significantly in the coming quarters, driven by lower amortization and higher yields [41] - The management remains cautious about the economic environment but is optimistic about the long-term growth potential of the servicing and Xome segments [46][52] Other Important Information - The company repurchased 700,000 shares for $35 million during the quarter, with plans to continue buybacks [11][70] - The company is exploring monetization alternatives for its Xome auction exchange platform, which is expected to contribute significantly to earnings [52] Q&A Session Summary Question: Follow-up on capital side and stock buybacks - The company has a significant amount of capital and plans to continue stock buybacks, especially as the stock is trading below its value [70][71] Question: Hedging on the MSR portfolio - The company hedges primarily for liquidity risk and may increase hedging if MSR values continue to grow [75] Question: Capital return and share repurchases - The management acknowledges the potential for book value growth and plans to remain active in share buybacks [79] Question: Outlook for origination volume and cash-out refinancing - Customers are still willing to do cash-out refinancing due to the need for cash, despite rising mortgage rates [106] Question: Activity in Xome and market share - The company has seen a significant increase in market share, now estimated at 30%, with expectations to reach 40% by year-end [111]

Financial Performance - Mr. Cooper Group Inc. reported a fair value of mortgage servicing rights (MSRs) at $6,006 million as of March 31, 2022, up from $4,223 million on December 31, 2021, reflecting a significant increase of 42.3%[31] - The Company reported total revenues of $1,052 million for the three months ended March 31, 2022, with $716 million from Servicing and $324 million from Originations[106] - The Company reported net income from continuing operations of $658 million for the three months ended March 31, 2022, compared to $559 million for the same period in 2021, representing a 17.7% increase[72] - Earnings per share from continuing operations attributable to common stockholders were $8.91 (basic) and $8.59 (diluted) for Q1 2022, compared to $6.20 (basic) and $5.90 (diluted) for Q1 2021, reflecting a significant increase of 43.5% and 45.5% respectively[72] - The Company achieved income from continuing operations before income tax expense of $866 million for the three months ended March 31, 2022[106] - Total revenues for the three months ended March 31, 2022, were $1,052 million, a decrease of $207 million compared to $1,259 million in the same period in 2021[122] Mortgage Servicing Rights (MSRs) - The total UPB of MSRs was $411,840 million as of March 31, 2022, compared to $339,208 million on December 31, 2021, indicating a growth of 21.4%[33] - The fair value of MSRs at the end of the period was $6,006 million, up from $3,354 million, representing an increase of approximately 78.8%[1] - The company recorded a change in fair value included in earnings for MSR of $563 million during the three months ended March 31, 2022[80] - The average life of mortgage servicing rights was reported at 7.4 years, with a cost to service per loan averaging $74[83] - The total MSRs UPB reached $411,840 million, a significant increase from $276,028 million year-over-year, reflecting a growth of about 49.1%[1] Revenue and Expenses - The Company reported total revenues from the servicing segment of $716 million for the three months ended March 31, 2022, compared to $568 million for the same period in 2021, representing a 26.1% increase[40] - Total expenses for the Company were $338 million, with $123 million from Servicing and $174 million from Originations[106] - Total expenses rose to $123 million, an increase of 11.8% from $110 million in the prior year[139] - The total revenues for the Originations segment decreased to $324 million in Q1 2022 from $595 million in Q1 2021, a decline of $271 million[160] Legal and Compliance - The Company is involved in various legal proceedings that may lead to administrative, civil, or criminal proceedings, potentially resulting in fines or penalties[90] - The Company believes that the current legal accrued liability is appropriate and does not expect any incremental liability to materially affect its consolidated financial condition[97] - The company maintained compliance with its financial covenants as of March 31, 2022, which include requirements related to tangible net worth and liquidity reserves[64] Operational Metrics - The servicing portfolio expanded from $10 billion in 2009 to $796 billion as of March 31, 2022, reflecting strong operational capabilities[115] - The company aims to grow its servicing portfolio to $1 trillion in UPB by acquiring new customers and retaining existing ones[116] - As of March 31, 2022, approximately 1.2% of customers were on a forbearance plan, down from a peak of 7.2% in July 2020[117] - The total ending balance for the servicing portfolio was $795,799 million, compared to $628,509 million in the previous year, reflecting an increase of about 26.7%[1] Cash Flow and Liquidity - Operating activities generated cash of $926 million in Q1 2022 compared to cash used of $76 million in Q1 2021, a change of $1,002 million[181] - Cash and cash equivalents decreased to $579 million as of March 31, 2022, from $895 million as of December 31, 2021[172] - As of March 31, 2022, total borrowing capacity was $16.5 billion, with $11.7 billion remaining unused[172] Interest Rates and Financing - The weighted average interest rate for advance facilities was 2.4% for the three months ended March 31, 2022, compared to 3.0% for the same period in 2021[59] - The company incurred interest expenses of $86 million for the three months ended March 31, 2022, down from $93 million in the same period of 2021, indicating a decrease of approximately 7.5%[63] - The company reported a discount rate for excess spread financing ranging from 9.5% to 13.8%[83] Market Conditions and Future Outlook - The Originations segment experienced declining funding volumes due to increased interest rates, with expectations of margin compression in Q2 2022[120] - The company anticipates continued portfolio growth in 2022, primarily through MSR acquisitions and subservicing[118] - The company aims to achieve a refinance recapture rate of 60% as part of its strategic priorities[116]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________________________________________________________________________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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: 001-35449 ___________________________ ...

Cooper Group Inc. (NASDAQ:COOP) Q4 2021 Earnings Conference Call February 11, 2021 10:00 AM ET Company Participants Ken Posner - SVP of Strategic Planning and IR Jay Bray - Chairman and CEO Chris Marshall - Vice Chairman, President and CFO Conference Call Participants Kevin Barker - Piper Sandler Doug Harter - Credit Suisse Giuliano Bologna - Compass Point Henry Coffey - Wedbush Operator Hello. Thank you for standing by, and welcome to Mr. Cooper Group Q4 2021 Earnings Conference Call. At this time, all par ...

Mr. Cooper Group Inc. (NASDAQ:COOP) Q3 2021 Earnings Conference Call October 28, 2021 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, President and Chief Financial Officer Conference Call Participants Kevin Barker - Piper Sandler Henry Coffey - Wedbush Mark DeVries - Barclays Bose George - KBW David Nierenberg - Nierenberg Investments Ken Posner Good morning and we ...