Company posts $275 million earnings in Q3
Mr. Cooper Group has announced a third-quarter net income of $275 million, up from $142 million in the second quarter.
The company’s pretax operating income reached $249 million, which included a $67 million gain from a securitization trust’s collapse. Without this gain, the quarter’s operating return on equity was 13.8%.
The company also noted a $61 million mark-to-market adjustment and a $96 million preliminary bargain purchase gain from acquiring Home Point Capital. Additionally, there was a $39 million loss primarily from selling its title business in 2021.
Read more: Home Point Capital shuts down for good, sells to Mr. Cooper
CEO Jay Bray highlighted the rise in the company’s servicing portfolio to $937 billion, nearing its $1 trillion goal. The servicing segment reported pre-tax income of $361 million for the third quarter.
“Our impressive performance, highlighted by rising return on equity, strong book value per share growth, robust capital, and record liquidity, reflects the strength of our balanced business model,” Bray said in a news release.
The company’s originations segment, which focuses on acquiring loans and refinancing existing ones, reported a pretax income of $29 million. Mr. Cooper funded loans totaling roughly $3.4 billion UPB in Q3, an 11% decrease from the previous quarter. The overall funded loans comprised $1.7 billion in direct-to-consumer and $1.7 billion in correspondent originations.
Chris Marshall, vice chairman and president, pointed out that these results have brought the company’s operating returns within its target range of 12-20%. He also announced his plans to retire by the end of 2024, prompting the company to start searching for his successor.
“I am very pleased with the outstanding performance of our operations, led by record servicing results and solid earnings in originations despite headwinds from rising rates,” Marshall said. “This drove our operating returns back into our 12-20% target range, distinguishing us from our competitors. Our focus on operational excellence and strategic initiatives positions us to continue to drive higher returns and sustained growth into the future.”
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