Mr Cooper Group Inc Stock Price, News & Analysis

Rushmore Loan Management Services has announced a definitive agreement to sell its residential mortgage servicing platform to Mr. Cooper Group for approximately $37 billion in unpaid principal balance, impacting around 250,000 customers. This strategic move follows Mr. Cooper's prior agreement to acquire Rushmore's parent company, Roosevelt Management Company, aiming to enhance its mortgage servicing rights fund. The deal is expected to close by mid-2023 pending regulatory approvals. Rushmore's CEO, Terry Smith, expressed confidence that this transaction will elevate their operational capabilities, while Mr. Cooper's CEO, Jay Bray, noted the commitment to delivering a seamless client experience. Financial and legal advisories for both companies include Houlihan Lokey and Mayer Brown.

Mr. Cooper Group Inc. (NASDAQ: COOP) reported a first quarter net income of $37 million or $0.52 per diluted share, bolstered by a mark-to-market gain of $63 million, leading to a return on capital employed (ROCE) of 3.7%. The company’s servicing portfolio grew 7% year-over-year to $853 billion, while the origination segment funded loans totaling approximately $2.7 billion, despite a 14% quarter-over-quarter decline in funded volume. Chairman Jay Bray emphasized the company's strong operating results and robust capital positioning. Book value per share remained stable at $58.57, reflecting solid asset quality and liquidity. The company repurchased 2.1 million shares for $89 million, indicating confidence in its financial standing.