Mr Cooper Group Inc (COOP)

[Dmdmd2020]

https://www.businesswire.com/news/home/20181108005318/en/Mr.-Cooper-Group-Reports-Quarter-2018-Financial

“Mr. Cooper Group Reports Third Quarter 2018 Financial Results and Signed Agreement for Strategic Acquisition of Originator with $25 Billion Servicing and $10+ Billion Annual Originations
$(64) million Predecessor quarterly GAAP loss (for one month ended July 31, 2018), $(0.65) per diluted share
$1,011 million Successor quarterly GAAP income (for two months ended September 30, 2018), $10.99 per diluted share
$54 million combined adjusted income for Predecessor and Successor, $0.58 per diluted share
6.5 basis points (bps) combined adjusted servicing profitability
$65 million combined Servicing pretax income, adjusted pretax income of $81 million
$32 million combined Originations pretax income, adjusted pretax income of $33 million
$4 million combined Xome pretax income, adjusted pretax income of $11 million
Signed agreement for strategic acquisition of originator with $25 billion servicing and $10+ billion annual originations
November 08, 2018 07:00 AM Eastern Standard Time
DALLAS--(BUSINESS WIRE)--Mr. Cooper Group Inc. (NASDAQ: COOP) (the “Company”), which principally operates under the Mr. Cooper® and Xome® brands, reported third quarter GAAP net loss of $(64) million, $(0.65) per diluted share for the one month ended July 31, 2018 (Predecessor), and reported GAAP net income of $1,011 million, $10.99 per diluted share for the two months ended September 30, 2018 (Successor). On an adjusted basis, the Company reported combined earnings for the third quarter of $54 million, $0.58 per diluted share.

“This was an extraordinary quarter for our company as we completed the WMIH Corp. merger and renamed the Company. We've made strides in all our business segments. Servicing achieved 6.5 basis points of adjusted profitability, Originations maintained profitability and Xome increased its third-party revenue to 56% with the acquisition of Assurant Mortgage Solutions,” said Jay Bray, Chairman and Chief Executive Officer of Mr. Cooper Group Inc. “We are continuing to make strategic investments to grow all our segments, and we are excited to announce our plans to acquire Pacific Union Financial, LLC. We believe this acquisition is complementary to our business and significantly increases our originations volume and capabilities. Subject to regulatory approvals, the transaction will also allow us to grow our Servicing portfolio by approximately $25 billion upon closing in early 2019.”

Servicing

The Servicing business is focused on providing a best-in-class home loan experience for our 3.2 million customers while also strengthening asset performance for investors. The segment earns recurring revenues from mortgage servicing rights (MSR) and subservicing. In the third quarter, Servicing earned $81 million combined adjusted pretax income or 6.5 basis points of adjusted profitability. Combined adjusted pretax profitability improved 12% from the prior quarter. Combined other income (expense) improved by $9 million primarily due to a decrease in interest expense related to MSR financing and higher float income.

Mr. Cooper boarded $37 billion UPB in the quarter to close the third quarter servicing portfolio at $514 billion UPB. The Company is on track to achieve its previously stated goal of 5% growth for the year with an expectation to end the year at $535 billion UPB.

Mr. Cooper remains confident in achieving adjusted servicing profitability in excess of 6.0 basis points on average for the full year 2018 which will be propelled by a lower prepayment environment and continued efficiencies.”


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Mr. Cooper Group current employee reviews:

https://www.glassdoor.co.uk/Reviews/Mr-Cooper-Mortgage-Loan-Officer-Reviews-EI_IE1748022.0,9_KO10,31.htm

The above link shows 6 reviews but I want to highlight two current employee reviews.

“26 Jan 2018 Helpful (10)
"It's a Trap"
StarStarStarStarStar
Current Employee - Mortgage Loan Officer in Santa Ana, CA (US)
Doesn't Recommend
Positive Outlook
I have been working at Mr. Cooper full-time (Less than a year)

Pros
Good working conditions, friendly staff.

Cons
They have over-hired so much that there is no work to do, Now that Soft Bank bought them out they have no use for us and are looking for any reason to get rid of most everyone. Suddenly nothing is good enough. They promised that they would start marketing but it's always being delayed for one reason or another. I might speak to one new customer a day, do my best for them only to have to spend hours being lectured about how I could have done things differently. And these are people who want to work with me.
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Advice to Management
Don't hire people just to manipulate your stock price. Changing your name to trick people in to thinking you're not the same horrible company was cruel.

...


11 Oct 2017 Helpful (2)
"Mortgage Professional or Loan officer"
StarStarStarStarStar

Current Employee - Mortgage Loan Officer in Irving, TX (US)
Recommends
Positive Outlook
CEO

I have been working at Mr. Cooper full-time (More than a year)

Pros
You are refinancing loans that you service and you are decently competitive on pricing on larger loans. The pay is also amazing. I feel like for what we do we get adequate compensation. 25 bps on all services loans and 40 bps on non serviced loans plus a bonus up to 18 bps. I have easily surpassed 200k the last two years.
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Cons
Unity in processing and underwriting is key. We have too many underwriters not stipping correctly or not knowing the guidelines. A loan officer should not be able to know a guideline that an underwriter doesn’t. I suggest a stronger and deeper training for underwriters, loan officers and processors on the guidelines. I also do not like the overlays set by us on loans.
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Advice to Management
Please try to find unity between underwriters and the rest of originations. A loan officer isn’t even allowed to email an underwriter. It seems strange to do that.”

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IMO...my conclusions as of January 01, 2019:

1) COOP as of Q3 2018 $514 billion UnPaid Balance (UPB), they’re goal by end of 2018 is $535 billion UPB.

2) I have been able to track 10 MBS Trusts (that were created by WMI subsidiaries and are bankruptcy remote) that are currently being serviced by COOP.

3) it’s obvious that not only is COOP servicing all loans but they are also trying to convince the borrowers, of the original loans that make up the $514 billion UPB, to refinance.

4) COOP will make money from this simple model of trying to refinance all the serviced mortgages under COOP. COOP is also trying to refinance all the WMI MBS Trusts that are being currently serviced by COOP.

5) IMO...This is what JPMC tried to do with all the portfolio loans (WMB + WMB, FSB = $231 billion). With all the refinanced loans as collateral, JPMC also generated new funding through unlimited Rehypothecation through their UK subsidiaries on a 4:1 ratio.

Thus in 2007 global rehyothecated loans = $4 trillion new funding by using only

$1 trillion in collateral.

My calculations JPMC potential loans generated from rehypothecation :

$231 billion (Wamu portfolio loans) x 4 = $924 billion

6) JPMC made a lot of money from the Wamu Saga, and so will COOP.