Mr Cooper Group Inc - COOP STOCK NEWS

Mr. Cooper Group (NASDAQ: COOP) has announced it will release its first quarter 2025 financial results on April 23, 2025 at 7:00 A.M. Eastern Time. The company will make available a press release, investor presentation, and recorded prepared remarks under the investors section of their website at www.mrcoopergroup.com.

Rocket Companies (NYSE: RKT) has announced a definitive agreement to acquire Mr. Cooper Group in an all-stock transaction valued at $9.4 billion. The merger will create America's largest mortgage servicing platform, managing over $2.1 trillion in loan volume and serving nearly 10 million clients - representing one in every six mortgages in America.

The transaction, expected to close in Q4 2025, will see Mr. Cooper shareholders receive 11.0 Rocket shares for each share of Mr. Cooper stock, representing a 35% premium. Post-merger, Rocket shareholders will own approximately 75% of the combined company, while Mr. Cooper shareholders will hold 25%.

The merger is projected to generate $500 million in annual run-rate synergies, including $100 million in additional pre-tax revenue from higher recapture rates and $400 million in pre-tax cost savings. The combined entity will leverage Rocket's AI-powered platform and Mr. Cooper's advanced servicing capabilities to enhance the homeownership experience.

Mr. Cooper Group (NASDAQ: COOP) reported strong Q4 2024 results with net income of $204 million and operating ROTCE of 15.8%. The company's servicing portfolio grew significantly by 57% year-over-year to $1,556 billion. Key financial highlights include:

- Pretax operating income of $235 million
- Book value per share increased to $75.70
- Tangible book value per share rose to $71.61
- Completed acquisition of Flagstar's mortgage operations
- Repurchased 0.4 million shares for $38 million

The Servicing segment recorded pretax income of $393 million, while Originations earned pretax income of $46 million. The company funded 32,954 loans totaling $9.3 billion UPB, with $2.6 billion in direct-to-consumer and $6.7 billion in correspondent channels. The funded volume increased 36% quarter-over-quarter.

Mr. Cooper Group (NASDAQ: COOP) has scheduled its fourth quarter 2024 financial results conference call for February 12, 2025, at 10:00 A.M. Eastern Time. The company will make available its press release and investor presentation before the call on their website's investor section.

Interested participants can pre-register for the call to receive a toll-free dial-in number and unique registrant ID. A simultaneous audio webcast will be accessible through the company's website, with a replay available for approximately two weeks until February 26th, 2025.

Mr. Cooper Group (NASDAQ: COOP) announced that Mike Rawls, CEO of Xome, will retire effective June 30, 2025. Chris Marshall, former Vice Chairman and President at Mr. Cooper, will take over Xome's operations. Rawls, who became CEO in 2020, has been with Mr. Cooper Group for 25 years and led Xome to become a significant real estate marketplace.

Marshall brings decades of experience in financial services, mortgage operations, and technology to his new role. He will focus on market share growth and new revenue opportunities while maintaining his position as Chairman for Sagent. The transition period will see Rawls and Marshall working together to ensure continuity in operations.

Mr. Cooper Group (NASDAQ: COOP) has appointed Andrew Bon Salle to its board of directors, effective January 1, 2025. Bon Salle brings over 30 years of experience in capital markets, risk management, securitization, and mortgage policy leadership. He previously served as Chairman of Home Point Capital Inc. and Executive Vice President of Single-Family Mortgage business at Fannie Mae, where he managed a $3.5 trillion credit portfolio and oversaw relationships with more than 2,000 clients. In his role at Fannie Mae, he was responsible for capital market functions, customer engagement, and leading the digital products group.

Mr. Cooper Group has completed the acquisition of Flagstar Bank's mortgage operations for approximately $1.3 billion in cash. The transaction encompasses MSRs, advances, subservicing contracts, and Flagstar's third-party origination platform. Following the acquisition, Mr. Cooper now serves more than 6 million customers. The company expects to fully integrate operations onto its platform during early 2025.

Mr. Cooper Group (NASDAQ: COOP) reported third quarter net income of $80 million, with pretax operating income of $246 million. The company achieved an operating ROTCE of 16.8% and grew its servicing portfolio by 32% year-over-year to $1,239 billion. Originations segment funded volume increased 80% quarter-over-quarter to $6.8 billion. The company repurchased 0.5 million shares for $46 million and issued $750 million senior notes at 6.5%. The servicing portfolio maintained strong performance with a 1.5% delinquency rate, while the company's book value per share increased to $72.49.

Mr. Cooper Group Inc. (NASDAQ: COOP) announced senior leadership updates to drive its digital-first strategy and AI-powered home loan experience. Sridhar Sharma has been promoted to Executive Vice President and Chief Innovation and Digital Officer, focusing on developing AI and machine learning solutions. Jeff Carroll joins as Senior Vice President and Chief Technology Officer to oversee core technology infrastructure operations.

The company is also welcoming Prerna Kandhari as Senior Vice President of Data Engineering and David Graham as Senior Vice President of Data Governance to lead data strategy and governance models. These appointments aim to enhance Mr. Cooper's digital transformation efforts, improve customer experience, and maintain its position as a leading mortgage servicer.