Mr. Cooper Group Inc. - COOP STOCK NEWS

Xome has introduced the Xpert Seller Program to assist homeowners facing foreclosure due to pandemic-related financial hardships. This program connects borrowers with real estate professionals for a transparent sales process through Xome's auction platform. Currently, 2.1 million homeowners are in forbearance, and Xome aims to empower them by providing resources to retain equity during this challenging time. Additionally, the program benefits buyers by increasing housing supply, mortgage servicers, and neighborhoods by reducing vacant properties.

Mr. Cooper Group reported a strong first quarter with a net income of $561 million or $5.92 per diluted share. This includes $373 million in other mark-to-market adjustments. Excluding these items, the pretax operating income stood at $363 million. The Servicing segment achieved $413 million in pretax income while the Originations segment generated $362 million. The company ended the quarter with significant cash reserves and robust capital ratios, reinforcing its financial stability.

On April 24, 2021, Mr. Cooper reported an error by its electronic payments vendor, ACI Worldwide, which issued incorrect mortgage payment drafts during a system test. The company promptly notified affected banks and took measures to prevent financial impact on customers. Of 480,000 potentially impacted customers, only about 100 may have incurred nonsufficient funds fees, which Mr. Cooper is in the process of reimbursing. The situation was managed effectively with no funds taken from customer accounts and no security breach. Mr. Cooper is committed to customer trust and support.

Mr. Cooper Group (NASDAQ: COOP) has formed a partnership with Google Cloud to enhance its digital mortgage servicing platform using advanced automation technologies. This collaboration aims to streamline the loan documentation process and improve the customer experience. CEO Jay Bray highlighted the substantial investments made in servicing technology, enabling Mr. Cooper to become the largest non-bank mortgage servicer in the U.S. The partnership will leverage over 300 proprietary machine learning models to improve document management accuracy and efficiency.

Mr. Cooper Group Inc. (NASDAQ: COOP) is set to discuss its Q1 2021 financial results on April 29, 2021, at 10:00 A.M. ET. The results will be available under the investors section of their website prior to the call. Participants can access the conference call by dialing 855-874-2685 or 720-634-2923 and using passcode 5199996. A replay will be available two hours post-call, accessible until May 14, 2021. Mr. Cooper is a leading home loan servicer, offering a range of services under its primary brands: Mr. Cooper® and Xome®.

Mr. Cooper Group (NASDAQ: COOP) announced Kurt Johnson's promotion to Executive Vice President and Chief Risk and Compliance Officer, expanding his role as Chief Credit Officer. With over 20 years in the mortgage industry, Johnson has been pivotal in establishing risk policies, notably advocating for mortgage relief during the pandemic through the CARES Act. He succeeds Steve Covington, who is retiring in June after nearly six years. Johnson is expected to leverage his expertise to enhance relationships with regulators and maintain the company’s strong risk management standards.

Blend has announced its definitive agreement to acquire Title365 from Mr. Cooper Group (NASDAQ: COOP) for approximately $422 million. This acquisition aims to integrate Title365's expertise in title insurance and settlement services with Blend's digital lending platform, enhancing the homebuying process for financial institutions and consumers. The deal reflects an enterprise value of $500 million with a 9.9% ownership retained by Mr. Cooper. The transaction is expected to close in Q2 2021, subject to regulatory approvals.

Mr. Cooper Group announced the sale of its title business, Title365, to Blend Labs for $500 million, comprising $450 million in cash and a 9.9% retained interest. The sale, expected to finalize in Q2 2021, will not contribute to earnings during that quarter. Mr. Cooper anticipates an after-tax gain of about $350 million and net cash proceeds of approximately $400 million post-transaction costs. The decision follows a strategic review to enhance focus on core servicing and origination business, reinforcing liquidity and tangible book value for shareholders.

Mr. Cooper Group reported Q4 net income of $191 million or $2.00 per diluted share. Excluding $6 million mark-to-market impacts and $85 million in debt breakage costs, pretax operating income was $329 million. The Servicing segment faced a $29 million pretax loss, while Originations earned $435 million in pretax income, funding 85,452 loans worth $24.5 billion. Xome recorded $10 million in pretax income. The company remains focused on customer service and technological capabilities as it enters 2021.