Mr. Cooper Group Inc. - COOP STOCK NEWS

Mr. Cooper Group has completed the acquisition of Flagstar Bank's mortgage operations for approximately $1.3 billion in cash. The transaction encompasses MSRs, advances, subservicing contracts, and Flagstar's third-party origination platform. Following the acquisition, Mr. Cooper now serves more than 6 million customers. The company expects to fully integrate operations onto its platform during early 2025.

Mr. Cooper Group (NASDAQ: COOP) reported third quarter net income of $80 million, with pretax operating income of $246 million. The company achieved an operating ROTCE of 16.8% and grew its servicing portfolio by 32% year-over-year to $1,239 billion. Originations segment funded volume increased 80% quarter-over-quarter to $6.8 billion. The company repurchased 0.5 million shares for $46 million and issued $750 million senior notes at 6.5%. The servicing portfolio maintained strong performance with a 1.5% delinquency rate, while the company's book value per share increased to $72.49.

Mr. Cooper Group Inc. (NASDAQ: COOP) announced senior leadership updates to drive its digital-first strategy and AI-powered home loan experience. Sridhar Sharma has been promoted to Executive Vice President and Chief Innovation and Digital Officer, focusing on developing AI and machine learning solutions. Jeff Carroll joins as Senior Vice President and Chief Technology Officer to oversee core technology infrastructure operations.

The company is also welcoming Prerna Kandhari as Senior Vice President of Data Engineering and David Graham as Senior Vice President of Data Governance to lead data strategy and governance models. These appointments aim to enhance Mr. Cooper's digital transformation efforts, improve customer experience, and maintain its position as a leading mortgage servicer.

Mr. Cooper Group Inc. (NASDAQ: COOP) has announced that it will discuss its financial results for the third quarter 2024 on October 23, 2024 at 10:00 A.M. Eastern Time. The company will release a press release and investor presentation prior to the call, which will be available on their website. Interested parties can pre-register for the conference call using a provided registration link, and a simultaneous audio webcast will be accessible on the company's website.

A replay of the audio webcast will be available approximately two hours after the call concludes and will remain accessible through November 6, 2024. The company has provided details for accessing the live webcast and replay through the investors section of their website at www.mrcoopergroup.com.

Mr. Cooper Group Inc. (NASDAQ: COOP) has announced its participation in the Barclays Global Financial Services Conference. Key executives, including Jay Bray (Chairman and CEO), Mike Weinbach (President), and Kurt Johnson (EVP and CFO), will engage in a fireside chat on Tuesday, September 10, 2024, at 3:30 P.M. Eastern Time.

A live webcast of the event will be accessible through the investor section of Mr. Cooper Group's website. For those unable to attend live, a replay will be available shortly after the event and remain accessible until October 10, 2024. This presentation offers investors and analysts an opportunity to gain insights into the company's strategies and performance directly from its top leadership.

LendingPoint, an online loan origination and servicing platform, has appointed Shawn Stone as its new Chief Executive Officer and Board member. Stone brings over 25 years of experience in financial services, including online loan origination, servicing operations, credit, and capital markets. He previously held executive positions at Mr. Cooper (NASDAQ: COOP), where he helped build the company into the largest home loan servicer in the U.S. Stone also served as CEO of Renovate America and as a senior advisor for Bayview Asset Management. His appointment comes at a pivotal time in LendingPoint's growth, with the company aiming to leverage his expertise in driving organizational success and delivering superior results.

Mr. Cooper Group Inc. (NASDAQ: COOP) has announced the pricing of a $750 million senior notes offering through its subsidiary, Nationstar Mortgage Holdings Inc. The notes, due in 2029, will bear an interest rate of 6.500% per annum, payable semi-annually. The offering is expected to close around August 1, 2024, with proceeds intended to repay a portion of Mr. Cooper's MSR facilities. The notes will be guaranteed by Mr. Cooper and Nationstar's wholly-owned domestic subsidiaries. The offering is to qualified institutional buyers in the U.S. and international investors under specific exemptions, as the notes have not been registered under the Securities Act.

Mr. Cooper Group Inc. (NASDAQ: COOP) reported strong Q2 2024 results and announced a significant acquisition. Key highlights include:

- Net income of $204 million, with ROCE of 18.1% and operating ROTCE of 15.3%
- Book value per share increased to $71.24
- Servicing portfolio grew 37% y/y to $1,206 billion
- Repurchased 0.3 million shares for $24 million
- Announced acquisition of Flagstar's mortgage operations for $1.4 billion in cash

The acquisition includes MSRs and subservicing contracts totaling approximately $356 billion in UPB, expected to close in Q4 2024. The company's servicing segment recorded pretax income of $354 million, while the originations segment earned pretax income of $38 million.

Flagstar Bank, N.A., a subsidiary of New York Community Bancorp, Inc. (NYSE: NYCB), has announced the sale of its residential mortgage servicing business to Mr. Cooper (NASDAQ: COOP) for approximately $1.4 billion. The transaction, expected to close in Q4 2024, includes mortgage servicing rights and the third-party origination platform. This strategic move is projected to add 60 basis points to NYCB's CET1 capital ratio.

The decision aligns with NYCB's focus on transforming into a leading, relationship-focused regional bank. While the company will continue to provide residential mortgage products to retail and private wealth customers, this sale reduces financial and operational risks associated with the volatile interest rate environment and increased regulatory oversight.