Financial Data and Key Metrics Changes - The servicing portfolio grew 14% to $992 billion at year-end, establishing the company as the industry's number one servicer [11][19] - For the full year, ROTCE was 12.5%, with pretax operating earnings totaling $660 million, primarily driven by servicing [23][35] - Tangible book value at the end of the year was $63.67, reflecting a strong financial position [23] Business Line Data and Key Metrics Changes - The company acquired Home Point, adding an $83 billion portfolio, which was accretive to tangible book value [24] - Servicing income for the quarter totaled $229 million, slightly ahead of revised guidance, with expectations for steady growth but at a pace below portfolio growth [35] - The DTC platform is highly profitable, with investments aimed at driving lower costs and faster turn times [39] Market Data and Key Metrics Changes - The company is currently boarding a $90 billion portfolio for a new client, indicating strong market demand [34] - The option adjusted spreads from bulk MSR deals have more than doubled in the last three years, reflecting favorable market conditions [20] Company Strategy and Development Direction - The strategic focus is on return on equity, with expectations to reach mid to upper teens by the end of 2025 [15][71] - The company aims to play a leadership role in the mortgage industry with a scalable platform offering best-in-class efficiency [17] - Investments in technology, including AI, are expected to drive operational leverage and enhance customer experience [6][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities available, citing a significant pipeline of deals with rich margins [32] - The company anticipates some headwinds in 2024, including potential margin pressure from lower interest rates, but expects to offset this with increased originations [35][57] - Delinquencies have fallen to 1.3%, the lowest level in the company's history, indicating strong asset quality [72] Other Important Information - The company issued $1 billion in senior notes, enhancing liquidity and financial flexibility [41][43] - The balance sheet is described as being in the strongest shape ever, with a capital ratio of 29.3%, well above the target range [74] Q&A Session Summary Question: How should we think about your ability to onboard new MSRs over the next few quarters? - Management indicated that technology and processes are not limitations, and they can handle significant onboarding volumes [77][78] Question: Can you elaborate on the guidance for ROE 14% to 18%? - Management explained that the ability to invest in attractive MSRs will boost earnings, impacting the ROE positively [82][83] Question: What is the outlook for the servicing book mix between forward MSR and subservicing? - The expected mix for the first quarter is about two-thirds subservicing and one-third owned MSR, with a goal of achieving a 50-50 mix over the year [134] Question: How do you avoid a melting ice cube effect for the servicing portfolio? - Management stated that with an 80% recapture rate and low CPRs, the melting ice cube concept does not apply, as they are growing the portfolio through acquisitions and subservicing [120][121] Question: What are the implications of potential regulatory changes? - Management believes that their capital ratios are well above what is required of banks, indicating no concerns regarding regulatory impacts on growth [127][128]

For the quarter ended December 2023, Mr Cooper (COOP) reported revenue of $404 million, up 33.3% over the same period last year. EPS came in at $1.71, compared to $0.86 in the year-ago quarter.The reported revenue represents a surprise of +1.43% over the Zacks Consensus Estimate of $398.31 million. With the consensus EPS estimate being $1.37, the EPS surprise was +24.82%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

Mr Cooper (COOP) came out with quarterly earnings of $1.71 per share, beating the Zacks Consensus Estimate of $1.37 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24.82%. A quarter ago, it was expected that this reinsurance company would post earnings of $1.73 per share when it actually produced earnings of $2.79, delivering a surprise of 61.27%.Over the last four quarters, the co ...

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]