Mr. Cooper Group Reports Q2 2024 Results

By Tamara Parker • Thursday, July 25 08:17 • Permanent Link

Mr. Cooper Group Inc. (NASDAQ: COOP) has reported its second quarter 2024 results, which include a net income of $204 million, representing a Return on Tangible Common Equity (ROTCE) of 18.1% and operating ROTCE of 15.3%. The company's book value per share and tangible book value per share have increased to $71.24 and $68.67, respectively.

In the servicing segment, Mr. Cooper Group recorded pretax operating income, excluding other mark-to-market, of $288 million for the quarter, with a servicing portfolio that grew 37% year-over-year to $1,206 billion. The company's 60+ day delinquency rate at period end decreased to 1.4% from 1.6% in the previous quarter.

Regarding the originations segment, the company earned pretax operating income of $38 million, funded 15,080 loans totaling approximately $3.8 billion UPB, and saw a 32% quarter-over-quarter increase in funded volume. Additionally, the total pull through adjusted volume increased by 48% quarter-over-quarter to $4.5 billion.

Furthermore, Mr. Cooper Group announced the acquisition of Flagstar's mortgage operations, including MSRs and subservicing contracts totaling approximately $356 billion in UPB, for $1.4 billion in cash. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.

The company also repurchased 0.3 million shares of common stock for $24 million and the board of directors approved an additional $200 million for stock repurchase, bringing the total authorization to approximately $270 million.

Chairman and CEO Jay Bray commented that Mr. Cooper Group has the operational capacity to onboard Flagstar’s customers smoothly and positively and looks forward to welcoming Flagstar team members to the Mr. Cooper family.

In light of these results and strategic moves, Mr. Cooper Group seems to be making significant strides in its servicing and originations segments, while also expanding its operations through the acquisition of Flagstar's mortgage operations. Following these announcements, the company's shares moved -2.4%, and are now trading at a price of $86.64. Check out the company's full 8-K submission here.

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