Mr. Cooper Group Inc. (NASDAQ: COOP) has released its first quarter 2025 financial results. The company reported net income of $88 million, including other mark-to-market of ($82) million, equivalent to ROCE of 7.3% and operating ROTCE of 16.8%. This marks a significant change from the previous period as the net income for the first quarter of 2024 was not provided in the press release. However, the company's pretax operating income was $255 million, excluding other mark-to-market and other adjustments.
The servicing portfolio grew 33% year-over-year to $1,514 billion, indicating substantial growth compared to the previous period. Additionally, Mr. Cooper Group Inc. won the 2024 Fannie Mae STAR Award, demonstrating its industry recognition and achievements.
The company also announced its combination with Rocket Companies, further solidifying its position in the homeownership platform. Chairman and CEO Jay Bray expressed pride in the team's hard work, highlighting the platform's ability to deliver consistent, recurring, and predictable results, as well as higher returns.
In the servicing segment, the company recorded pretax income of $214 million, including other mark-to-market of $82 million. The servicing portfolio ended the quarter at $1,514 billion, further showcasing its growth compared to the previous period. The carrying value of the MSR was $11,345 million, equivalent to 155 bps of MSR UPB.
For the first quarter of 2025, the company funded 32,296 loans totaling approximately $8.3 billion UPB, with $1.9 billion in direct-to-consumer and $6.4 billion in correspondent loans. This marks a decrease in funded volume of 10% quarter-over-quarter, while the pull-through adjusted volume decreased by 2% quarter-over-quarter to $8.8 billion.
Following these announcements, the company's shares moved -0.6%, and are now trading at a price of $111.38. For more information, read the company's full 8-K submission here.
