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Mr. Cooper Group(COOP) - 2025 Q1 - Quarterly Results
COOPMr. Cooper Group(COOP)2025-04-23 11:00

Financial Performance - Reported net income of 88millionforQ12025,downfrom88 million for Q1 2025, down from 204 million in Q4 2024, with a return on common equity (ROCE) of 7.3% and operating return on tangible common equity (ROTCE) of 16.8%[7] - Total revenues for Q1 2025 were 560million,comparedto560 million, compared to 654 million in Q4 2024, with operational revenue of 707million,upfrom707 million, up from 672 million[6][19] - Total expenses increased to 430millioninQ12025from430 million in Q1 2025 from 367 million in Q4 2024[19] - Net income for the quarter was 204million,withdilutedearningspershareat204 million, with diluted earnings per share at 3.13[27] - Operating income was reported at 178million,withanoperatingROTCEof15.8178 million, with an operating ROTCE of 15.8%[28] - The company reported a pretax income of 280 million, with an income tax expense of 76million[27]−Basicearningspershareforthequarterwas76 million[27] - Basic earnings per share for the quarter was 3.20, reflecting strong performance compared to previous periods[27] - The company experienced a decrease in ROCE to 7.3% from 17.3% in the previous quarter[31] - Total expenses for the quarter were 367million,indicatingeffectivecostmanagementstrategies[27]ServicingSegment−Servicingsegmentgeneratedpretaxincomeof367 million, indicating effective cost management strategies[27] Servicing Segment - Servicing segment generated pretax income of 214 million, with a servicing portfolio of 1,514billion,reflectinga331,514 billion, reflecting a 33% year-over-year growth[5][7] - The carrying value of mortgage servicing rights (MSR) was 11,345 million, equivalent to 155 basis points of MSR UPB[5][7] - Average UPB for the servicing portfolio was 1,531billion,comparedto1,531 billion, compared to 1,407 billion in the previous quarter[8] - The 60+ day delinquency rate improved to 1.5% at the end of Q1 2025, down from 1.6% in Q4 2024[8] Originations Segment - Originations segment earned pretax income of 45million,funding32,296loanstotalingapproximately45 million, funding 32,296 loans totaling approximately 8.3 billion in UPB, a 10% decrease quarter-over-quarter[9][10] - The company achieved a refinance recapture percentage of 51% in Q1 2025, up from 35% in Q4 2024[12] Strategic Developments - The company announced a combination with Rocket Companies to create an integrated homeownership platform[4][7] - The average stockholders' equity (BV) for the quarter was 4,852million,showinggrowthfrom4,852 million, showing growth from 4,726 million[31] - Average tangible book value (TBV) increased to 4,641million,upfrom4,641 million, up from 4,553 million in the previous quarter[31] Gains on Mortgage Loans - The company recorded a net gain on mortgage loans held for sale of $117 million, contributing positively to overall revenues[27]