Mr. Cooper Group(COOP) - 2025 Q1 - Quarterly Results

Financial Performance - Reported net income of $88 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 $560 million, compared to $654 million in Q4 2024, with operational revenue of $707 million, up from $672 million[6][19] - Total expenses increased to $430 million in Q1 2025 from $367 million in Q4 2024[19] - Net income for the quarter was $204 million, with diluted earnings per share at $3.13[27] - Operating income was reported at $178 million, with an operating ROTCE of 15.8%[28] - The company reported a pretax income of $280 million, with an income tax expense of $76 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 $367 million, indicating effective cost management strategies[27] Servicing Segment - Servicing segment generated pretax income of $214 million, with a servicing portfolio of $1,514 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 $1,531 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 $45 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 $4,852 million, showing growth from $4,726 million[31] - Average tangible book value (TBV) increased to $4,641 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]