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  • Jonathan Poyer

Mr. Cooper's (COOP) Big Beat

Mr. Cooper (COOP) reported a second quarter net income of $151M or $2.03/diluted share (BusinessWire). Net income included another mark-to-market of $196M, which includes fair value of excess spread accretion of $4M. Excluding other mark-to-market and other items, the Company reported pretax operating income of $17M. Other items included $3M in severance charges, $3M in transaction costs related to the acquisition of our new default servicing business, $1M in facilities consolidation costs, and $1M in intangible amortization.

As a result, the stock started today's session ripping up:

Mr. Cooper Group Reports Second Quarter 2022 Results

  • Reported total net income of $151 million including MSR mark of $196 million, equivalent to ROCE of 15.1%

  • Book value per share increased to $56.34 and Tangible book value per share increased to $54.51

  • Servicing UPB grew to $804 billion, up 23% y/y

  • Repurchased 2.3 million common shares for $100 million

Of special note:


The servicing segment recorded pretax income of $226M. The forward servicing portfolio ended the quarter at $804B in UPB. Servicing generated pretax operating income, excluding other mark-to-market, of $30M. At quarter end, the carrying value of the MSR was $6,151M equivalent to 155bps of MSR UPB


The Originations segment earned pretax income of $61M and pretax operating income of $63M, which excluded $2M in severance charges. The Company funded 29,154 loans in Q2, totaling approximately $7.8B UPB.

The quarterly call is available in the Investor section of

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