DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1470604
42 MR. COOPER POSTS Q1 GAINS Dallas-based mortgage servicer Mr. Cooper Group Inc., which principally operates under the Mr. Cooper and Xome brands, has reported a Q1 2022 net income of $658 million. Led by the recent "attractively priced acquisition opportunities" including the closing of a deal with Sagent—which netted the company a $223 million gain—the company's servicing unpaid balance (UPB) grew to $796 billion, up 27% year over year. e deal with Sagent, originally announced in February, allows Sagent to buy certain intellectual property rights related to Mr. Cooper's proprietary, cloud- based technology platform for mortgage servicing, and Mr. Cooper will receive an equity stake in Sagent. Sagent has integrated Mr. Cooper's platform into a cloud-native core and licensed the resulting cloud-based servicing platform to Mr. Cooper and other servicers, including Sagent's large customer base of banks and independent mortgage companies. Sagent will begin marketing the cloud-based servicing platform to other mortgage companies in 2023. Mr. Cooper's servicing segment currently contains 3.9 million customers, and recorded a pretax income of $558 million in Q1. Mr. Cooper's servicing generated pretax operating income, excluding other mark- to-market, of $7 million. At the close of Q1, the carrying value of the Mortgage Servicing Rights (MSRs) was $6,006 million equivalent to 146 bps of MSR UPB. "During the quarter, we were able to react quickly and take advantage of attractively priced acquisition opportunities, and we were awarded sizeable subservicing mandates, which together produced spectacular growth in our servicing portfolio, which reached $796 billion," Mr. Cooper Chairman and CEO Jay Bray said. "We now have 3.9 million customers, and nothing is more important to us than delighting every single customer with a personalized, friction- free experience that helps them achieve their goals." e company's origination segment earned a pretax income of $155 million, with a pretax operating income of $157 million, which excluded $2 million in charges related to severance. In total, Mr. Cooper funded 46,933 loans in Q1, earning approximately $11.6 billion UPB, comprised of $7.8 billion in direct-to- consumer and $3.8 billion in correspondent. Funded volume decreased 33% quarter over quarter, while pull through adjusted volume decreased 30% quarter over quarter to $10.3 billion. "While the sharp rise in interest rates will place pressure on the originations industry, we are in a much better position than most, as we stand to benefit from significant improvements in servicing profitability during 2022," said Chris Marshall, Mr. Cooper's Vice Chairman and President. Industry Updates From mergers and acquisitions to cutting-edge tech tools and solutions, here's the company news the industry is talking about this month.