Mr. Cooper Group Inc. (NASDAQ: COOP) has released its fourth-quarter 2024 results, showcasing notable achievements and growth. The reported net income of $204 million, inclusive of other mark-to-market of $92 million, reflects a return on average tangible common equity (ROCE) of 17.3% and operating return on tangible common equity (ROTCE) of 15.8%.
The company's book value per share and tangible book value per share increased to $75.70 and $71.61, respectively. The servicing portfolio experienced significant growth, reaching $1,556 billion, marking a 57% increase year-over-year.
During the quarter, Mr. Cooper Group repurchased 0.4 million shares of common stock for $38 million and completed the acquisition of Flagstar’s mortgage operations. Additionally, the company was acknowledged as the top mortgage servicer by Freddie Mac, receiving the 2024 Sharp Gold Award.
In the servicing segment, pretax income reached $393 million, including other mark-to-market of $92 million. Excluding the mark-to-market adjustment, the segment generated pretax operating income of $318 million. The carrying value of the mortgage servicing rights (MSR) was $11,736 million, equivalent to 159 basis points (bps) of MSR unpaid principal balance (UPB).
The company's origination segment also demonstrated strong performance, earning pretax income of $46 million and pretax operating income of $47 million. Mr. Cooper Group funded 32,954 loans, totaling approximately $9.3 billion UPB, reflecting a 36% increase in funded volume quarter-over-quarter.
The financial report also indicated the company's growth in the average UPB, with a 60+ day delinquency rate at 1.6% at the end of the period. Additionally, the annualized constant prepayment rate (CPR) increased to 7.5% compared to 7.1% in the previous quarter.
The acquisition of Flagstar’s mortgage operations and the growth in both servicing and origination segments have positioned Mr. Cooper Group for continued success in 2025. The company's management expressed confidence in its strong capital, liquidity, and dedicated team, emphasizing a focus on serving customers, clients, and stakeholders.
Investors and industry analysts will be keenly observing the company’s conference call, scheduled for February 12, 2025, to gain further insights into its financial performance and strategic outlook. The market has reacted to these announcements by moving the company's shares -0.4% to a price of $106.92. For the full picture, make sure to review Mr. Cooper's 8-K report.
