With this acquisition, Rocket will bring its industry-leading mortgage recapture capabilities to a combined servicing book of $2.1 trillion across nearly 10 million clients, representing one in every six mortgages in America. Ultimately, this combination drives higher loan volume and long-term client relationships – while providing greater recurring revenue and lowering client acquisition costs. DETROIT and DALLAS, March 31, 2025 /PRNewswire/ -- Rocket Companies (NYSE: RKT), the Detroit- based fintech platf ...

Customer and Portfolio Metrics - As of December 31, 2024, the company served 6.7 million customers with an aggregate unpaid principal balance (UPB) of $1,556 billion, including $736 billion in owned servicing and $820 billion in subservicing[16]. - In 2024, the company acquired $753 billion UPB of loans, with $516 billion related to subservicing, contributing to the growth of its servicing portfolio[16][18]. - The company's subservicing portfolio accounted for 53% of the total servicing portfolio, with a total UPB of $820 billion as of December 31, 2024[21]. - The company funded $22.8 billion in mortgage loans during the year ended December 31, 2024, and was the 18th largest mortgage loan originator in the U.S.[24]. - The direct-to-consumer channel represented 35% of the company's mortgage originations in 2024, with a pull-through adjusted lock volume of $7.7 billion[27]. - The correspondent channel accounted for 65% of mortgage originations in 2024, with a pull-through adjusted lock volume of $16.3 billion[29]. Technology and Innovation - The company has invested significantly in technology solutions to enhance customer experience and improve service quality[22]. - The company incorporates generative AI in call centers to enhance productivity and has developed a mortgage-centric AI platform for loan portfolio analysis[130]. - The company is making significant technology investments to enhance customer-facing technology and improve operational efficiency, but the returns on these investments are unpredictable[120]. - The company has ongoing research and development for AI technology, with potential applications in various business operations[130]. Regulatory and Compliance Risks - The company is focused on maintaining compliance with a wide array of federal, state, and local regulations that impact its servicing and originations operations[33]. - The company faces risks from regulatory compliance, which could increase operational costs and impact profitability due to extensive regulations at federal, state, and local levels[133]. - The company is subject to minimum financial eligibility requirements established by Agencies, which could impede growth if not met[95]. - The company must comply with individual state licensing requirements across all 50 states, which can lead to substantial compliance costs and operational challenges[147]. - The Federal Housing Finance Agency (FHFA) may impose more stringent requirements on GSEs, which could affect the company's ability to purchase or sell MSRs[86]. - The company may face increased scrutiny and enforcement actions from regulators, particularly regarding consumer protection and compliance with new regulations[138]. Financial Performance and Risks - The company's revenues in Originations and Servicing are highly dependent on macroeconomic and U.S. residential real estate market conditions[52]. - Changes in prevailing interest rates may decrease the company's earnings, with interest rates rising further and faster than any time in modern history[54]. - A disruption in the secondary home loan market, including the MBS market, could have a detrimental effect on the company's business[58]. - The company may be unable to obtain sufficient capital to operate its business, which could adversely affect its financial condition and results of operations[59]. - Increased delinquencies in loans could lead to lower revenue for loans serviced for GSEs and Ginnie Mae, as servicing fees are collected only for current performing loans[53]. - The company faces risks related to its ability to maintain or grow the size of its servicing portfolio and originations volume[47]. - The company is highly dependent on loan programs administered by the Agencies to generate revenues[47]. - The company may not realize all anticipated benefits from previous or potential acquisitions and dispositions[47]. - The company faces risks related to its level of indebtedness, which could limit its ability to obtain financing on acceptable terms and adversely affect its business and financial condition[66]. - The company is exposed to consumer credit risk, which may require repurchasing loans or indemnifying purchasers, impacting its financial condition[75]. - Changes in tax legislation could adversely impact the company's provision for income taxes and overall financial condition[80]. - The company may face limitations in utilizing its net operating losses (NOLs) due to potential ownership changes, which could trigger additional restrictions[81]. - The company is required to make servicing advances, which can be subject to delays in recovery or may not be recoverable, potentially impacting financial condition[91]. - The company has experienced a significant decrease in loan origination volume due to rising interest rates, adversely affecting refinancing revenues[99]. - The company is exposed to interest rate risk, which can negatively affect operations, particularly in the servicing and originations segments[234]. Legal and Reputational Risks - The company is subject to numerous legal proceedings, which may result in significant financial liabilities and affect its liquidity and financial position[141]. - The company has established reserves for legal proceedings, but the ultimate resolution may involve material losses beyond current estimates[146]. - The company faces reputational risks from negative public opinion related to various activities, including lending practices and technology failures, which could impact customer retention and investor sentiment[127]. Market and Economic Factors - The volume of residential real estate transactions is highly variable, influenced by factors such as average real estate sales prices, availability of financing, mortgage interest rates, and consumer confidence[111]. - The Real Estate exchange business is affected by delays in foreclosure sales and economic slowdowns, with a significant impact on REO exchange revenues due to ongoing foreclosure moratoriums[111]. - The company's GNMA loan portfolio may experience higher default risk due to high Loan to Value Ratios (LTV), leading to potential losses from servicing expenses[107]. - The company has increased the volume of second lien originations, which carries higher market risk and may result in significant losses if market disruptions occur[110]. Interest Rate Management - The MSR hedge strategy targets a hedge coverage ratio of 75% of the MSR portfolio modeled interest rate risk, subject to change based on market conditions[238]. - Changes in interest rates could lead to increased prepayment speeds, impacting earnings through higher amortization expenses and decreased servicing fees[237]. - The pipeline hedging strategy aims to economically hedge the entire pipeline interest rate exposure of IRLCs and mortgage loans held for sale within certain tolerance levels[240]. - The company utilizes a duration-based model to assess the impact of interest rate shifts on its loan portfolio and interest rate derivatives[243]. - As of December 31, 2024, the company performed a sensitivity analysis to estimate changes in the fair value of assets and liabilities sensitive to interest rates[246]. Financial Position and Borrowing Capacity - The aggregate principal amount of the company's unsecured senior notes was $4,950 million as of December 31, 2024[63]. - The principal amount of advance facilities increased from $682 million in 2023 to $849 million in 2024[263]. - The principal amount of warehouse facilities rose significantly from $822 million in 2023 to $2,016 million in 2024[263]. - The principal amount of MSR facilities increased from $2,814 million in 2023 to $3,650 million in 2024[263]. - The unsecured senior notes principal amount grew from $3,200 million in 2023 to $4,950 million in 2024[263]. - The company has a total borrowing capacity of $1,400 million for advance facilities, with an additional $551 million available[264]. - The company is required to maintain a minimum net worth base of $2.5 million plus additional amounts based on servicing UPB for FHFA and Ginnie Mae[253]. - The company is scheduled to pay a total of $1,542 million in interest payments from unsecured senior notes over the next eight years[267]. Accounting and Financial Reporting - Deferred income taxes reflect temporary differences between financial reporting and tax purposes, with a valuation allowance provided if deferred tax assets are unlikely to be realized[274]. - The company relies on reversals of existing deferred tax liabilities and future taxable income to determine the adequacy of the valuation allowance[274]. - Recent accounting updates include ASU 2023-09, effective after December 15, 2024, enhancing transparency in income tax disclosures[276]. - ASU 2024-03 requires public entities to disclose disaggregated expenses in annual reporting periods beginning after December 15, 2026[277]. - The company is currently evaluating the impact of recent accounting standards on its financial statement disclosures[276][277].

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to ...

Mr. Cooper Group Inc. (COOP) reported fourth-quarter 2024 adjusted earnings per share of $2.73, which beat the Zacks Consensus Estimate by 5.8%. The bottom line rose 59.6% year over year.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.Solid improvements in the Servicing and Originations segments were major tailwinds for the company in the fourth quarter. The servicing portfolio increased year over year, surpassing the $1.56-trillion mark. However, a decline in revenues and an ...

Mr. Cooper Group Inc. (NASDAQ:COOP) Q4 2024 Earnings Conference Call February 12, 2025 10:00 AM ET Company Participants Ken Posner - Senior Vice President, Strategic Planning & Investor Relations Jay Bray - Chairman & Chief Executive Officer Mike Weinbach - President Kurt Johnson - Executive Vice President & Chief Financial Officer Conference Call Participants Terry Ma - Barclays Mark DeVries - Deutsche Bank Crispin Love - Piper Sandler Doug Harter - UBS Bose George - KBW Derek Sommers - Jefferies Eric Hage ...

4Q'24 EARNINGS REVIEW February 12, 2025 1 | IMPORTANT INFORMATION 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 Repor ...

Mr Cooper (COOP) came out with quarterly earnings of $2.73 per share, beating the Zacks Consensus Estimate of $2.58 per share. This compares to earnings of $1.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.81%. A quarter ago, it was expected that this reinsurance company would post earnings of $2.54 per share when it actually produced earnings of $2.84, delivering a surprise of 11.81%.Over the last four quarters, the com ...

Exhibit 99.1 FOR IMMEDIATE RELEASE MR. COOPER GROUP REPORTS FOURTH QUARTER 2024 RESULTS Dallas, TX (February 12, 2025) - Mr. Cooper Group Inc. (NASDAQ: COOP) (the "Company"), reported fourth quarter income before income tax expense of $280 and net income of $204 million. Excluding other mark-to-market and other adjustments, the Company reported pretax operating income of $235 million. Adjustments included other mark-to-market net of hedges of $92 million and other items shown below in the reconciliation of ...

Value investing is a time-tested strategy that focuses on finding assets trading for less than their intrinsic value, allowing investors to buy such undervalued assets at a discount. This approach hinges on the idea that market prices often don’t fully reflect a company’s fundamentals, providing opportunities to benefit from market corrections in the long run.A key metric for value investors is earnings yield, which offers insight into a stock’s profitability relative to its market price. Earnings yield is ...

The Zacks Consumer Loans industry continues to witness weakening asset quality. The industry also bears the brunt of inflation, relatively higher rates and a challenging macroeconomic backdrop. Though the Federal Reserve plans to cut rates as soon as September, consumers understand that high interest rates are here to stay for some time, and demand for the loans is likely to witness modest improvement. Yet, easing lending standards, stabilizing consumer sentiments and digitizing operations will support cons ...