Mr. Cooper Group Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the three months ended September 30, 2024, total revenues decreased to $424 million from $574 million in the same period of 2023. This decline was primarily attributed to negative impacts from mark-to-market adjustments on Mortgage Servicing Rights (MSRs). Service-related revenues also fell to $288 million from $432 million year-over-year. In contrast, total revenues for the nine months increased to $1,571 million, up from $1,390 million in 2023.
Net income for the third quarter was $80 million, a significant drop from $275 million in the prior year, while net income for the nine months rose slightly to $465 million from $454 million. Earnings per share (EPS) for the third quarter were $1.24 (basic) and $1.22 (diluted), down from $4.14 and $4.06, respectively, in 2023. However, EPS for the nine months improved to $7.21 (basic) and $7.06 (diluted) from $6.70 and $6.58 in the previous year.
Total expenses for the third quarter increased to $335 million from $301 million in 2023, driven by higher general and administrative costs associated with the MSR servicing portfolio and increased origination volumes. The company reported a total of $13.86 billion in sales proceeds and loan payment proceeds for mortgage loans held for sale for the nine months, compared to $11.19 billion in 2023.
Strategically, Mr. Cooper Group has been active in acquisitions, including the purchase of Rushmore Loan Management Services LLC and Roosevelt Management Company in 2023, and the recent acquisition of Home Point Capital Inc. The company has also signed definitive agreements to acquire certain mortgage operation assets from Flagstar Bank, expected to close in Q4 2024, which will add approximately $1.1 billion in MSRs and expand its customer base significantly.
As of September 30, 2024, cash and cash equivalents stood at $733 million, up from $571 million at the end of 2023. Total assets increased to $16.19 billion from $14.20 billion, while total liabilities rose to $11.55 billion from $9.91 billion. The company’s retained earnings also grew to $4.77 billion from $4.30 billion.
Overall, Mr. Cooper Group's performance reflects a complex landscape of revenue challenges and strategic growth initiatives, positioning the company for future opportunities in the mortgage servicing and origination markets.
About Mr. Cooper Group Inc.
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