Mr Cooper Group Inc Stock Price, News & Analysis

Mr. Cooper Group Inc. (NASDAQ: COOP) reported a strong second quarter with a net income of $439 million, or $4.85 per diluted share, which includes a $135 million mark-to-market charge. The pretax operating income, adjusted for various items, was $227 million. Key highlights include a $485 million gain from the sale of Title365 and strong cash reserves of $1.2 billion. Despite a pretax loss of $56 million in the Servicing segment, Originations earned $207 million in pretax income. The company emphasizes its robust balance sheet and strategic actions that aim for future growth.

Mr. Cooper Group (NASDAQ: COOP) announced key executive appointments aimed at enhancing its growth strategy and customer service. Shawn Stone joins as Executive Vice President and Chief Revenue Officer, focusing on new delivery channels and technology utilization to improve customer experiences. Jay Jones has been promoted to Executive Vice President, overseeing the Servicing business. Both leaders will support the company's goal of becoming the largest home loan provider in the U.S. Their experience and strategies are expected to drive profitable growth and strengthen the customer-centric culture.

Mr. Cooper Group Inc. (NASDAQ: COOP) will announce its financial results for Q2 2021 on July 29, 2021, at 10:00 A.M. Eastern Time. A press release and investor presentation will be available on the company's website beforehand. Participants can pre-register for the call online to receive a toll-free number and access code. A telephone replay will be available shortly after the call and can be accessed until August 14, 2021, using the provided passcode. Mr. Cooper is a leading home loan servicer with various products and services in the U.S.

Mr. Cooper Group announced the completion of the sale of Title365 to Blend Labs for $500 million on June 30, 2021. This deal included $450 million in cash and a retained interest of 9.9%. Mr. Cooper expects to record an after-tax gain of approximately $350 million from this transaction. CEO Jay Bray emphasized that the sale not only reinforces the company's growth and profitability commitment but also enhances its tangible book value and liquidity, positioning them to drive shareholder value.

Mr. Cooper Group announced a definitive agreement to sell its Reverse servicing portfolio, operated under the Champion Mortgage brand, to Mortgage Assets Management, LLC. The transaction, subject to regulatory approvals, will reduce Mr. Cooper's servicing portfolio by approximately $16 billion in unpaid principal balance and decrease its assets by around $5 billion. The Company expects no significant impact on second-quarter results. This strategic move allows Mr. Cooper to focus on its core segments, improving profitability and capital ratios, and enabling accelerated growth.

Mr. Cooper announced the promotion of Chris Marshall to President, responsible for originations and servicing segments, while retaining his current duties until a new CFO is appointed. COO Tony Ebers has resigned to explore other opportunities. CEO Jay Bray highlighted the company's resilience during the pandemic and aims to grow the servicing portfolio to $1 trillion, focusing on innovative service delivery and consistent returns. Marshall, who joined in 2019, has a strong financial background and is committed to enhancing customer homeownership experiences.

Xome has introduced the Xpert Seller Program to assist homeowners facing foreclosure due to pandemic-related financial hardships. This program connects borrowers with real estate professionals for a transparent sales process through Xome's auction platform. Currently, 2.1 million homeowners are in forbearance, and Xome aims to empower them by providing resources to retain equity during this challenging time. Additionally, the program benefits buyers by increasing housing supply, mortgage servicers, and neighborhoods by reducing vacant properties.

Mr. Cooper Group reported a strong first quarter with a net income of $561 million or $5.92 per diluted share. This includes $373 million in other mark-to-market adjustments. Excluding these items, the pretax operating income stood at $363 million. The Servicing segment achieved $413 million in pretax income while the Originations segment generated $362 million. The company ended the quarter with significant cash reserves and robust capital ratios, reinforcing its financial stability.

On April 24, 2021, Mr. Cooper reported an error by its electronic payments vendor, ACI Worldwide, which issued incorrect mortgage payment drafts during a system test. The company promptly notified affected banks and took measures to prevent financial impact on customers. Of 480,000 potentially impacted customers, only about 100 may have incurred nonsufficient funds fees, which Mr. Cooper is in the process of reimbursing. The situation was managed effectively with no funds taken from customer accounts and no security breach. Mr. Cooper is committed to customer trust and support.