“We delivered an exceptional quarter,” said Jay Bray, chairman and CEO of Mr. Cooper Group. He pointed to a return on tangible common equity of 16.8% and record liquidity. Bray also highlighted the company’s excitement about closing its acquisition of Flagstar Bank’s mortgage operations, expected by the end of the year.
The origination side of the business was clearly the star of the show this quarter. The company funded over 25,000 loans, totaling $6.8 billion in unpaid principal balance (UPB). Of that, $2.3 billion came from direct-to-consumer loans, while the correspondent channel brought in $4.5 billion.
The servicing segment also delivered strong results, with $305 million in pretax operating income, although it was impacted by a $126 million mark-to-market loss. The company’s mortgage servicing rights carried a value of $10.04 billion, equal to 148 basis points of its unpaid principal balance (UPB).
President Mike Weinbach highlighted the company’s ability to capitalize on the rally in mortgage rates during September and noted that new initiatives in the correspondent channel were well received by clients.
“I’m extremely pleased with our strong performance in servicing and exceptional execution in originations, where volumes increased 80% quarter-over-quarter, as our direct-to-consumer channel helped customers take advantage of the rally in mortgage rates during September, while our correspondent channel implemented a number of new initiatives which were well-received by clients,” Weinbach said in a Press release.
Source: mpamag.com