COOP - Mr. Cooper Group Inc. (COOP) Q1 2024 Earnings Call Transcript
2024-04-24 14:38:13 ET
Mr. Cooper Group Inc. (COOP)
Q1 2024 Earnings Conference Call
April 24, 2024 10:00 AM ET
Company Participants
Ken Posner - SVP of Strategic Planning and IR
Jay Bray - Chairman & CEO
Mike Weinbach - President
Kurt Johnson - EVP& CFO
Conference Call Participants
Crispin Love - Piper Sandler
Bose George - KBW
Doug Harter - UBS
Kyle Joseph - Jefferies
Giuliano Bologna - Compass Point
Terry Ma - Barclays
Eric Hagen - BTIG
Presentation
Ken Posner
Good morning and welcome to Mr. Cooper Group's First Quarter Earnings Call. My name is Ken Posner and I'm SVP of Strategic Planning and Investor Relations. With me today are Jay Bray, Chairman and CEO; Mike Weinbach, President, and Kurt Johnson, Executive Vice President and CFO.
As a reminder, this call is being recorded. You can find the slides on our investor relations webpage at investors.mrcoopergroup.com. During the call, we may refer to non-GAAP measures, which are reconciled to GAAP results in the appendix to the slide deck. Also, we may make forward-looking statements, which you should understand could be affected by risk factors that we've identified in our 10-K and other SEC filings. We are not undertaking any commitment to update these statements if conditions change.
And with that, I'll now turn the call over to Jay.
Jay Bray
Thanks, Ken, and good morning, everyone, and welcome to our call. This morning, I plan to talk about Mr. Cooper's technology strategy, which has been a major driver of our growth and which is the key to sustaining higher returns. But first, let's review the quarterly highlights on Slide 3. Operating ROTCE hit 14.5%, which was a great way to start the year as this gets us into our guidance range of 14% to 18% and we continue to see opportunities to progress higher into this range by executing on our strategy.
We were pleased to report tangible book value at 15% year-over-year to $65.48. Now turning to Servicing, the portfolio hit $1.1 trillion as we acquired $54 billion in MSRs, with double digit yields and completed onboarding a $9 billion portfolio from an important new subservicing client. On a year-over-year basis, the portfolio is up 33%. At this point in the cycle, we are clearly pulling away from competitors in terms of building scale.
Thanks to [fast] (ph) portfolio growth and impressive operating leverage, servicing income reached $273 million. Mike will comment more on the pipeline in a minute, but I'll spill a little bit of this thunder and tell you we're continuing to see super attractive opportunities in the bulk market, which we believe reflects the shakeout going on in the industry with banks pulling back from the asset class and originators seeking a source of liquidity....
Mr. Cooper Group Inc. (COOP) Q1 2024 Earnings Call Transcript