Mr. Cooper Group Reports Q1 2025 Financial Results with Revenue of $560 Million

Mr. Cooper Group Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $560 million, a slight decrease from $564 million in the same period of 2024. The company's net income also fell to $88 million, down from $181 million year-over-year, resulting in earnings per share of $1.38 compared to $2.80 in the prior year. The decline in profitability was attributed primarily to negative mark-to-market adjustments on mortgage servicing rights (MSRs) due to a decrease in mortgage rates, contrasting with positive adjustments in the previous year.

In terms of operational performance, Mr. Cooper's servicing segment generated $440 million in service-related revenues, down from $478 million in 2024. The decrease was partially offset by a net gain of $120 million on mortgage loans held for sale, which increased from $86 million a year earlier. Total expenses rose to $430 million from $317 million, driven by higher salaries and general administrative costs associated with the growth of the MSR servicing portfolio and increased origination volumes.

The company has made significant strategic moves, including a definitive agreement with Rocket Companies, Inc. for an all-stock acquisition valued at $9.4 billion, expected to close in the fourth quarter of 2025, pending shareholder and regulatory approvals. Additionally, Mr. Cooper completed the acquisition of certain mortgage operations from Flagstar Bank in late 2024, which has contributed to the expansion of its servicing and subservicing portfolio.

Operationally, Mr. Cooper reported a servicing portfolio with an unpaid principal balance (UPB) of $733.8 billion as of March 31, 2025, an increase from $630.7 billion a year prior. The company serviced approximately 6.45 million loans, reflecting a growth in customer count. However, the average loan amount increased to $234,152 from $221,605, and the delinquency rates showed slight improvements, with 60+ days delinquent loans at 1.5%, down from 1.6% in 2024.

Looking ahead, Mr. Cooper anticipates moderate growth in its bulk pipeline and aims to enhance its direct-to-consumer channel, particularly in home equity loans and cash-out refinances. The company remains focused on strengthening its balance sheet and improving operational efficiencies while navigating the challenges posed by market conditions and interest rate fluctuations.