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Mr. Cooper Group Inc. (COOP) is the largest servicer of residential mortgage loans in the United States and a significant originator of residential mortgage loans. The company provides mortgage servicing, loan origination, and related financial services to millions of customers. It also offers real estate property disposition services and investment advisory services through its subsidiaries.
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Servicing - Manages mortgage loans on behalf of investors or owners, including collecting payments, managing escrow funds, performing loss mitigation, and administering the mortgage loan servicing portfolio.
- Owned Servicing - Services loans with an unpaid principal balance (UPB) owned by the company.
- Subservicing - Provides servicing for loans owned by third parties.
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Originations - Originates residential mortgage loans through direct-to-consumer channels for refinancing and correspondent channels for purchasing or originating loans from mortgage bankers.
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Corporate/Other - Includes unallocated overhead expenses, operations of Xome and Roosevelt Management Company, and other corporate functions not directly attributable to the operating segments.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Jay Bray ExecutiveBoard | Chief Executive Officer | Member of Dallas Area Habitat for Humanity; Member of Sagent M&C, LLC; Member of Mortgage Bankers Association | Jay Bray has served as the Chief Executive Officer of Mr. Cooper Group Inc. since July 2018. He has an extensive background in the mortgage servicing industry, having held leadership roles such as President at COOP and Executive Chairman at Xome Holdings LLC. | View Report → |
Carlos M. Pelayo Executive | Executive Vice President & Chief Legal Officer | Carlos M. Pelayo serves as the Executive Vice President & Chief Legal Officer at Mr. Cooper Group Inc. since February 2023. He has over 20 years of legal expertise and previously held senior roles at Merrill Lynch Wealth Management, Barclays, Lehman Brothers, and Davis Polk & Wardwell LLP. | ||
Kurt G. Johnson Executive | Executive Vice President & Chief Financial Officer | Kurt G. Johnson is the Executive Vice President & Chief Financial Officer of Mr. Cooper Group Inc. since March 2023. With over 25 years of experience in the mortgage-banking industry, he has successfully led risk management and credit governance initiatives at the company. | ||
Michael Rawls Executive | Chief Executive Officer of Xome Holdings LLC | Michael Rawls is the CEO of Xome Holdings LLC since January 2020. He has over 20 years of experience in mortgage operations and has previously held executive roles at Mr. Cooper Group, including Executive Vice President positions in servicing and default management. | ||
Michael S. Weinbach Executive | President | Michael S. Weinbach is the President of Mr. Cooper Group Inc. since February 1, 2024, responsible for leading the company’s operations, including Originations, Servicing, and Technology. He previously served as Executive Vice President from January 2024 to February 2024. | ||
Andrew Bon Salle Board | Independent Director | President, The Bon Salle Group ; Board Member, CoreLogic, Inc. ; Board Member, Meridian Capital Group, LLC ; Board Member, PollyEx, Inc. | Andrew Bon Salle is an Independent Director at Mr. Cooper Group Inc. (COOP) since January 1, 2025. He brings over 30 years of expertise in capital markets, risk management, and mortgage policy leadership from previous roles including executive positions at Fannie Mae. | |
Daniela Jorge Board | Independent Director | Senior Vice President & Chief Design Officer at Capital One Financial Corporation since June 2023; Board member at BayBrazil ; Board advisor at Loft Brasil, Tecnologia LTDA | Daniela Jorge serves as an Independent Director at Mr. Cooper Group since 2022. She also holds a key executive role as Senior Vice President & Chief Design Officer at Capital One Financial Corporation since June 2023, bringing extensive expertise in strategic leadership and design innovation. | |
Roy Guthrie Board | Independent Director | OneMain Holdings, Inc.; Synchrony Financial | Roy Guthrie has served as an Independent Director at Mr. Cooper Group since 2018 and resumed his role as Independent Lead Director in July 2024, while also chairing the Audit & Risk Committee since at least 2022. He has extensive experience in financial leadership from previous executive roles at Renovate America, Discover Financial Services, and CitiFinancial International. | |
Shveta Mujumdar Board | Independent Director | Senior Vice President, Corporate Development at Intuit, Inc. (since February 2022); Board Member, Board of Trustees for Whittier College | Shveta Mujumdar has served as an Independent Director at Mr. Cooper Group since 2020. She also has an extensive background in corporate development roles at companies including Intuit, Inc., Block, Inc., and Lynda.com. | |
Steven Scheiwe Board | Independent Director | President of Ontrac Advisors, Inc.; Board Member at Atlas Financial Holdings, Inc.; Board Member at Penn Treaty American Corporation | Steven Scheiwe has served as an Independent Director at Mr. Cooper Group since 2012. He also contributes to the Audit & Risk and Compensation Committees with deep expertise in financial literacy and corporate governance. | |
Tagar Olson Board | Independent Director | Founder of Integrum Holdings LP | Tagar Olson has been an Independent Director at Mr. Cooper Group since 2015 and serves as the Chair of the Compensation Committee. He has extensive financial services experience, having founded Integrum Holdings LP in 2021 and previously served as a Partner at KKR from 2002 to 2019. |
- Can you provide more specifics about the initiatives to further drive down servicing expenses below the current 5.3 bps, especially considering the increased complexity from integrating the Flagstar acquisition?
- With UPB growth projected in the low double digits, how do you intend to balance organic growth against potential heightened risk exposure and integration challenges?
- Given that a rate drop remains a key catalyst for expanding your originations business, what alternative strategies will you implement if mortgage rates remain elevated for an extended period?
- Following the atypical recapture rate drop to 35% due to an unusual portfolio, what measures are you taking to ensure that similar portfolio anomalies do not adversely affect future MSR valuations?
- Considering the robust double-digit growth in fee-based services revenue, how do you plan to sustain this momentum amid competitive pressures and evolving regulatory landscapes, while continuing significant investments in technology?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Flagstar’s Mortgage Operations | 2024 | Completed in Q4 2024, Mr. Cooper acquired Flagstar’s mortgage operations for approximately $1.3 billion in cash via both an Asset Purchase and an MSR Purchase Agreement, obtaining roughly $1.2 billion of MSRs plus $101 million of customer relationship intangibles, which added 334 billion in UPB and onboarded 1.1 million customers. |
Flagstar Bank, N.A. Mortgage Operation Assets | 2024 | Announced on July 24, 2024 and closed on October 31, 2024, this acquisition for approximately $1.3 billion in cash brought in about $1.1 billion of MSRs, $85 million of advances, subservicing contracts with $270 billion UPB and a total UPB addition of 356 billion, with integration planned in early 2025. |
Home Point Capital Inc. | 2023 | Completed on August 1, 2023 via a dual-transaction structure, this acquisition involved a bulk purchase of MSRs and a tender offer totaling $658 million (netting $323 million) plus assumption of $500 million in senior notes, adding an $84 billion servicing portfolio and accelerating scale toward a $1 trillion target. |
Roosevelt Management Company and Affiliated Subsidiaries | 2023 | Acquired in July 2023 for $28 million, this transaction was accounted for as a business combination under ASC 805 with $21 million in goodwill and $4 million in intangibles, enhancing Mr. Cooper's asset management platform for raising third‐party capital and strengthening its servicing capabilities; $8 million in acquisition costs were incurred. |
Rushmore Loan Management Services, LLC | 2023 | Completed in Q2 2023 for $34 million, this asset acquisition included subservicing contracts along with servicing advances and receivables, recorded $23 million in intangible assets (notably related to customer relationships), and supported increased subservicing fee revenue with recognized industry ratings from Fitch, Moody’s, and S&P. |
Right Path Servicing | 2022 | This acquisition of a specialty servicer focused on high-touch/default loans included $20 billion in subservicing UPB, and brought in advanced analytics and customer engagement expertise, reinforcing Mr. Cooper’s default servicing capabilities and strategic integration despite rising operational headcount expenses. |
Sagent Transaction | 2022 | In a strategic divestiture, Mr. Cooper sold parts of its Mortgage Servicing Platform to Sagent M&C for a total consideration of $260 million (receiving 19.9% equity in Sagent and $9.9 million in cash), recording a pre-tax gain of $223 million while establishing a multi-year license and board representation to advance a cloud-native servicing platform. |
Recent press releases and 8-K filings for COOP.
- Strategic Combination: Mr. Cooper Group announced its strategic combination with Rocket Companies to form the industry’s leading integrated, digital homeownership platform
- Strong Q1 2025 Performance: Reported ROCTE of 16.8% with a Q1 net income of $88M, $255M pretax operating income and income before tax of $95M (ROCE of 7.3%)
- Robust Balance Sheet & Servicing: Maintained a solid balance sheet with $3.9B in liquidity and a capital ratio of 25.5%, complemented by a robust ~$1.5 trillion servicing portfolio (33% YoY growth) and $332M in servicing pretax income
- Originations: The originations segment contributed $53M in pretax earnings by funding 32,296 loans totaling approximately $8.3B UPB, despite a modest quarter-over-quarter decline
- Transaction Details: Rocket Companies to acquire Mr. Cooper in an all‐stock deal valued at $9.4 billion with an exchange ratio of 11.0 Rocket shares per Mr. Cooper share and a $2.00 cash dividend per share .
- Timeline & Ownership: Effective as of March 31, 2025 with closing expected in Q4 2025, resulting in pro forma ownership of approximately 75% Rocket shareholders / 25% Mr. Cooper shareholders and Mr. Cooper becoming a wholly owned subsidiary of Rocket Companies .
- Synergies & Strategic Benefits: Integration is expected to deliver annual synergies exceeding $500 million, incorporating nearly 7 million Mr. Cooper clients into Rocket’s platform servicing over $2.1 trillion in loan volume, while leveraging AI-driven technology and Rocket’s 83% recapture rate .
- Valuation & Premium: The transaction values Mr. Cooper at $9.4B with a 35% premium over the 30-day VWAP .
- Earnings Accretion: The merger is anticipated to be earnings accretive in Q4 2025 .
- Strong Q4 performance with net income of $204 million (including a $92 million mark-to-market adjustment), pretax operating income of $235 million, overall ROTCE of 18.1% and operating ROTCE of 15.8%.
- Updated guidance for 2025/2026 with a ROTCE target range raised to 16%–20%, reflecting ongoing investments in technology and operational efficiencies.
- Servicing segment delivered robust results with a portfolio of $1.56 trillion, $318 million in pretax income (up 39% YoY), including originations generating $47 million and fee‐based revenues of $500 million (over 20% of total revenue).
- Achieved enhanced capital strength with liquidity of $3.4 billion and Tangible Book Value per share increased to $71.61 (up 12% YoY).
- Completed the Flagstar Mortgage Operations acquisition—adding 1.1 million customers—and repurchased 0.4 million shares for $38 million.
- Earned the Freddie Mac 2024 SHARP Gold Award.