Mr. Cooper Group Inc. has recently released its 10-Q report, detailing its operations as a non-bank servicer of residential mortgage loans in the United States. The company operates through Servicing and Originations segments, with a focus on helping mortgage borrowers manage their largest financial asset. As of March 31, 2024, the company's servicing portfolio grew to $1.1 trillion, reflecting its strong operating capabilities, loss mitigation skills, and commitment to compliance.
In the first quarter of 2024, Mr. Cooper's Servicing segment generated income before income tax expense of $313 million, with the servicing portfolio exceeding the strategic target of $1 trillion in Unpaid Principal Balance (UPB). The Originations segment generated income before income tax expense of $32 million on funded volume of $2.878 billion. The company expects growth conditions to remain favorable, particularly for bulk Mortgage Servicing Rights (MSR) purchases.
The company's total revenues for the first quarter of 2024 stood at $564 million, marking a significant increase from $330 million in the same period in 2023. Income before income tax expense also saw a substantial increase, reaching $232 million compared to $35 million in the first quarter of 2023. Net income for the quarter was reported at $181 million, up from $37 million in the same period last year.
The Servicing segment's operational revenues increased to $577 million, a significant jump from $407 million in the first quarter of 2023. The company's competitive strengths in the Servicing segment, such as its low-cost platform and strong customer service, were critical to its long-term growth as a servicer and subservicer. Mr. Cooper's Servicing segment also achieved strong servicer ratings from Fitch, Moody's, and S&P, reflecting its operational capabilities and industry recognition.
The company's Servicing and Subservicing portfolio UPB stood at $1.136 trillion as of March 31, 2024, reflecting a substantial increase from $852.549 billion in the same period in 2023. The average loan amount for the portfolio was reported at $221,605, with a total prepayment speed of 4.7% for the first quarter of 2024.
The market has reacted to these announcements by moving the company's shares 1.6% to a price of $80.78. If you want to know more, read the company's complete 10-Q report here.
