Mr. Cooper (COOP) 26 Jul 232023 Q2 Earnings call transcript

Good morning and welcome to Mr. Cooper Group Second 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; Chris Marshall, Vice Chairman and President; and Kurt Johnson, Executive Vice President and CFO.

As a quick reminder, this call is being recorded. the our find at Relations can investors.mrcoopergroup.com. you slides Investor on webpage Also,

we non-GAAP factors SEC the refer reconciled the be and statements, may During call, other understand should to identified we make results could in the which XX-K you Also, by to in measures we've appendix filings. deck. to risk slide affected may forward-looking that GAAP are which our

to We update undertaking are commitment these any conditions if statements change. not

the turn I'll call Jay. over now to

morning good and Thanks welcome and Ken, our call. everyone, to

slide turn the increased quarter growth basis the which Let's $XX.XX. to and with was review highlights. ROTCE, Starting X same and which at remain liquidity XXX to and extremely in At the the tangible with near-record point a capital I operating levels. XX.X%, second gain book in financial time, value performance, hit share, pleased per

out operations, Turning pending over in portfolio which income. The the produced $XXX but $XXX with you team billion end, million to HomePoint, excellent and we're pre-tax such trillion is quarter nearly as told MSR if Late of $XXX servicing yields, reached billion, results top with our target. on we as at acquisitions, include bulk to it. $X in cycle-wide expect last you year, playing a is now foresaw surge sales we that

the welcome world-class built us investors. and our hearty to We value contributing a family. the of one bring largest who skills trusted makes the Rushmore institutional with portfolio relationships to important joined you to special team now offer members Also growth, I'd Cooper which we of completed XXX acquisition the you've platform Servicing, the servicers. like new the to

never quarter. best-in-class in which automation of you stopped and consistent income pleased investing guidance recapture platform, incredible our I'm progress our we've the very $XX efficiencies with mortgage volatility pre-tax Despite the and driving last gave exceeded performance. years, our through over reported in Originations million, we rates last

since I'm we authorization announce us our management, $XX pleased XX% Furthermore, inception. for million, by repurchased X.X million repurchased repurchase capital board which increasing $XXX turning million. another brings to cumulative very the a shares to Now, to approved shares has that of

confidence should signal business in for You we strong reflected specifically returns, Cooper's very and model, continued strong a as do outlook Mr. not the growth of price. in our the take and this which stock see

team to we and advocacy be great certified very add. a consecutive to happiness were I It's might with inclusive purposeful, to fifth place to for a for the members pleased important our world-class our very essential because team work the provide member as Finally, year deserve. environment and customers their service for engagement, with us providing they is

you let to part great me pause a everyone at such Mr. say to be here So, this team making a to for of. Cooper thank

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know, you XX% growth years. portfolio Cooper servicing, when it strongest in As a record comes over mortgage the with CAGR residential most consistent has Mr. of XX industry and nearly the to

the investing I'd us pools. when way, that details, for which, into than servicing suffice gives acquired we over portfolios last the emphasize time, we've our bidding $XXX a the in were constantly sellers, information this Now X,XXX significant the by but over What throughout advantage decade, is dive more platform. is of from to or time totaling not billion it to place say, hundreds

creativity, These in reason are and are advantages talk the never-ending earned course, result, our and leader to platform, think competitive we hard about of and dispute perfecting all today analysts we But performance decisive a focus, discipline, which, process. loss internally, any don't nation's drivers, our investors our like fact, mitigation, there's among key of do that position close the peers in the and as competitive we would advantage Nor becoming much about servicer. In cost servicing. I work. I why we've think a of service, are the is through the recapture. question largest leadership

to and on XXXX, channels. XXXX double-digit DTC and a So levels, X Cooper talk correspondent both boom, in about strong slide refinancing ROTCE return-on-equity. turn the thanks very performance let's fantastic In capitalized and to to driving Mr. our

few from through on increase off eased During origination our fastest in balanced a of minimum it rate generations. our took XX%. of XXXX, earnings servicing we cusp the are where to And returns portfolio, target thanks to margins kick large mortgage business to back now and the back the a passed contribution transition quarters due for while in, period model our

sustained we're of we continue I equity to higher are execute honestly course have been lot value but add And of ambitious internally more potential shareholder focused about tracking, returns profile. goals. pleased the on market plan for We the as a with would excitement demonstrate there's return on creating to direction and a the our

some strategic of we're about working talk let's on. the So initiatives

is strategy until us on greater deploy with us. leverage cost we the no premised one significant operating we're costs, already help peers. advantage as at generate while capital same drive time a our we believe And over benchmark in our deepening growth. First, working competitive data, can will into unit which portfolio leadership. mode compete cost Nonetheless, on to enjoy Based we further reductions

make extremely preparation That customer new without and is explore later see We're to to on active clients and liquidity. business, potential with channels. our new bigger while sell experience platform income, or grow work we're working in discussions our incremental in fund out a And cost, we're profitable leverages overall year. continued also building and means asset for management tying DTC it speed, and capability platform products our provides from we'd recapture, gain we an MSR to like self-servicing and contribution capital on third, our results. which up launching including this Second,

new high price the since merger a we comment in I'll reached to that the pleased closing, see XXXX. In were quite WMIH stock

don't the of think on with discount, benefits our competitive However, trading market appreciates fully making the a progress the and HomePoint advantages, acquisition, stock the still the strategic we at we're initiatives.

results. Chris to turn discuss I'll that, operating strong to our over with it And

these being places place of well and With one you to year of Jay. Good my in at great add proud which being the teammates begin Thanks, want Texas. my into a to now. Cooper results Cooper I had my tremendous very assume the for this at as certified things named the comments, everyone. directly fifth are thanks Hey, translated all to we for work going also can right I'm effort, extremely best great before Mr. to also their accolades, I work Mr. all also quarter. morning,

turn the So doesn't from in by X will record our to income results, we a talk slide raising pre-tax working we're acquisitions and announced, we're servicing, about Based for trust one-time we and or more. well as earned in that, to income. let's this a full-year contribute $XX million close guidance expect as we've gains pending these million with operating an on where $XXX XX%, And collapse on, million the from million. include to which additional $XXX $XXX which half operating second

stronger means business about our you expect stable exactly can what for healthy considerably more but talk model, firms see servicing balance, that contribution much earnings. activity low our balanced overall and from limited consistent while peers. should And results is having than this our as CPR originations, many you are Now

right is favorable relentless is for in like are trends cyclical our on platform, now, focus our a us. the honestly perfecting while real religion servicing story which However,

while operating our Currently, we're costs, million out taking focused we in where annual year-end on laser dollars center, a experience. have customers' customer improving XX call of goal our

in quarters. customers for win-win from Our here, been can call chart much strategy with own, the right, access for see volume the is progress calls their the the is drive to making upper easier on which to and company. lower We've as few XX%, last by information where have per on dropped them loan making progress you by steadily a accelerating

This for productivity on us, portfolio even our as has can driver actually you has the see grown. the declined, where center as in chart is right, huge headcount call lower a

first the customer to chatbots help like help and for of to resolution. especially their agents at last and better in use payments. always with By of complicated leverage servicing need upgraded we're considerable including both success human improvement the those allows more people And with machine As are also they meaningful you We're very who IVR and them. our may easier to chat technology, need to putting system, customers us standard recall, to information our chat having learning. state-of-the-art making now rates issues, for see IVR in needless year questions, chat life we're areas say, a for seeing starting there authentication we customers. we're And our excellent data where fingertips, which containment,

take and a X let's our to growth. look Now portfolio slide turn closer at

add factoring the which in be $XXX As expecting schedule. the internal based would been by quarter ended billion. forecast, XX target trillion-dollar at but pending it ahead we're hit transactions, portfolio XX our I'd to year-end, on that of would have our months to Jay mentioned, billion, $XXX

scheduled third be HomePoint these is billion to the that always, is the in quarter. the as is subject in first our pending which close would transactions, to Although, which Among priority, UPB, returns. $XX acquisition largest at

transaction. realize XXXX, Now point HomePoint very as XXXX post-closing. economics reminder, of there's the integration loans planning the of we're late no over a in to early so not any this onboard operations, speak full which taking We're to we'll or at

see for customer at have pending Mae, large we the bulk pre-tax you expect digits to share And seller billion proprietary our for seller And and in on a attractive in quite we I'd guided for portfolio is higher boarding unlevered that what is what double $XX acquisitions, exactly forecast MSR year. Ginnie this our late also even pools last process. loans strong well. to we when acquiring of conventional very a include with trading We you know shared we're a buyer's smooth which from yields low market plenty we which values continue and service with

now since sharp market. new our turmoil we're the opportunities and MSR grow find excited increase subservicing this you'll to banks then What's bringing earlier pools spring, interesting regional about to also business. in a what seeing We're following

a with clients, potential team investors. originators, have including experienced MSR very executive We industry relationships banks, new on deep very calling and

in Additionally, intended a products we're subject quarter. servicing quarter, to be company We're special to another to positioning MSR is process with approval, of platform expanded our fund, fourth in menu as the close you of of source us of an regulatory expecting our acquisition And our finally, which the begin know launching subservicing. to we've campaign capability. third fundraising the the new subservicing in

spend turn X minute a let's this. slide and on just to So

constructive to integrating operate our servicing brand, special existing decided and existing possible platform to worst, but turn a which not ones. unit, on already a their During RightPath. the other the cycle many play now new very pleased to quarter, Rushmore our the Rushmore in we and of delinquent Servicing, with the we're as well-established share under only Rushmore and Rushmore acquisition working our regarded that and portfolios, customers Since marketplace, course as is could MSR signing Should it helping of manage while servicers is existing a Rushmore's closed onto I'm role their everyone's we've player, we're investors clients, highly credit and merging keep homes, we've take for in retained goal.

owned position. cushions we'd for Now, high-quality our growth would for strong into we've many the speed and major turn where opportunity equity Rushmore to sizable of bump, competitive very a only but a us, in mortgage constructed enjoy if concern a borrowers portfolio be but hit most recession remains rates. of economy low economists, a a MSR, were Not

we're each overall during to an decline second basis delinquencies with As XX-day quarter the both in seeing individual any our strain, of today, not loan category. of continuing and signs on

the Now, some recently September. loan up end questions coming we've student forgiveness gotten about in of

strain. As for of whom payment represents are this know, a there millions you potential homeowners

had As expect, customers student outstanding, these borrowers you'd as provide monitoring they may any of assistance June XXth, and XX% loans of by we're to and standing our need.

home we'll borrowers reason prioritizing not quarter However, update at over mortgage generally have risk. next their better on to we're data. more other impact as major not obligations, served this payments any it's And for that are the so more simple anticipating you we put

this So Slide above to quarter million story let's EBT, of which great shift was X our gears was and high talk with end about and the Originations, $XX turn guidance. which another

execution the DTC saw in competition we continued platform somewhat by quarter, outstanding more and our rational correspondent channel. the During

million in rates guidance mortgage so the play to second with to we're quarters. million quarter. of the keep And high going originations, at may into our per watermark coming the at hovering quarter $XX However, seasonality year X%, additionally, unchanged come is the traditionally for $XX

the expand rates goal we're efficiency and refinance platform better the to recapture margins. gains and scope experience. terms in and which of to continuing with an scale our in producing mentioned best in platform, of further is invest Nonetheless, Jay ambitions in and our of DTC making class customer even speed the

with which You've impressive see the Project in cycle about talk year. Not you down whenever efficiency occur. over cost XX% last give how tasks up only for but ability upper to on in update, extremely involves well direct heard us this digitizing automating gains just processing an Flash, cost in originations you driving this chart And loan progress lower per to mean the bodes the and we're might the can that workflow. next does today, our right, scale

and self-served out we're much number investments will further more customers efficiency for investments Flash, experience scalability. driving and of DTC a powerful contribute while These savvy more making to streamlined customer databases. CRM more In rolling platform, our in implementing digital addition sales example, for tools a to

be with execution to channels. which us close recapture performance the refinance that to customers the most is recapture is bulk our considering XX% This Our and of through continues industry to best-in-class average. extraordinary in correspondent times at come the quarter, X

that MSR and a By We'll of you our intent us, quarter. leading provide is channel growth letter this it white we investor recently services on after DTC. signed, basis. and to the for brand-new is for next recapture this to be first the signed more on label way, a represents And contract hopefully, a will update a

the and some can of more signs pricing have off, market saw terms year, we of MSR the since doubled irrational But see, nearly in correspondent assumptions. quarter. as we players improved the of valuation channel in earlier the competition then, Regarding you volumes and some pricing backed in has aggressive

to on huge volume the And higher correspondent and are the reminder, in of returns completely cycle, sellers see compelling this a the and capacity, due point environment. As we're with creating concentrated channel-agnostic. continue more totally returns a pricing but focused is more bulk and network buyers of channel in relatively at we to limited rational a

sales we this ahead it's capable you'll happened if provide EBT sales I'll on in while obviously XX, slightly what's generating Xome. an an turn Last Now time that's improvement the to positive. unit much profitability is strong actually and momentum we're breaking a to to being even to on the guided Xome And looking update Slide is and quarter, important XX% larger when milestone, above. exactly

are it's volumes data pick Now foreclosure on hard be Across year-over-year. increase in to market, for one precise up citing play. us XX% entire starting to timing because a many with are variables the source

much low look sales in relative levels seeing or pre-pandemic foreclosure the whether to you not quite data, where However, inventories FHA at are still levels. movement

by in a bear lags FHA Now mind, few data months.

in some would our labor Xome. with the more positive you movement which deteriorates own a on meaningfully momentum report we'll which the more the be see platform. be perhaps foreclosures could weakness and higher huge if we're see move seeing economy for markets, the So in next consistent would And sales housing

On other delinquent to in era second comment the FHA I'd programs could on borrowers sought comments borrowers extended it claims streamlined pandemic financial subsequently the and its the hand, additional programs and partial that all help facing hardship. quarter,

of upwards seeing as they among think since rates out we a good a our own customers or taking strong ago. customers borrower-friendly them delinquent servicer, XX% these programs, we're of and initial rolled month with advantage take-up so Now are were of

pace to may and foreclosures. these recidivism But programs as we'd normalization there Now well. slow nonetheless, the significant of be expect

macro can't the to summarize, outlook respect we To in drivers. and policy clarity long-term offer both perfect with

and with job positive quarter with by guide fueled execution to Exchange However, Xome in third minus I $X is meantime, share in or momentum. continued and sales you results doing plus an the market excellent the million EBT,

to Kurt. And with that, I'll turn over it

Thanks summary to start I'll on you Chris, a call which and morning, start. good the Slide gives items I'll everyone. of XX, four out financials.

adjustments, related costs which some investments, provide the with associated a to in me in largely of let million million $X to. of severance Rushmore, $X $X equity acquisition million on First, loss color related consisted deal and

line the an cloud-native to at first core, platform. servicing spending is servicing level, which technology elevated cloud-based our will Sagent ever it to expectations Currently after go under in with with integrate market

the value guided bonds. part that regarding per you Second, of bonds book will about remind benefit structure roughly Upon like we as in from at accretion. of that and to financing closing, share to we I'd our assumed our continue $X guarantee will same HomePoint, acquisition tangible the to be other gain HomePoint and good very as feel closing,

of expect rate additional year. part interest run For quarterly as of modeling you fourth an $X beginning the million our this should in expense purposes, in quarter

the basis $XXX Third, marked fee lower We higher million to XXX and servicing to quarter times valuation leading by UPB end MSR. multiple interest of base MSR X.X and up of strip. at for points a rates turning the CPRs, account of the

losses we continue tolerance our line a $XX the gain $XXX to a Offsetting of of within on from communicated our target servicing is coverage excess XX%. equates the This MSR we of markup, portfolio. XX%. The included to million, ratio hedge as of strip million incurred sale also policy mark which conventional the hedge

execution. retained for in as recall which a basis contractual may pools used quarters, million you point from we've generated XX in cash fee optimize unwound addition sale this above and to portfolio As a the gain, and bigger minimum the With to strip stock strategy securitized trade this servicing capital growth recent market the transaction, we in we repurchase. $XXX

to tax about totals our our sheet in the deferred balance on DTA The $XXX change million like I'd $XX you assets quarter. in Finally, currently million. update

income DTAs cash our flow. cash on offset tax payments, our an annual and our taxable utilize strengthens minimize to We continue which to basis

the communicated consistent billion, increased MSR and which $X.X the fully collateralized liquidity. is $XXX which line, added in resulting $X.X second last Slide what million billion, a we to MSR consisting $XXX up let's by turn new our Of of billion, of lines, liquidity to available XX and million quarter. quarter, Now completely the available. overall capacity In remainder was $X.X liquidity our we review you on immediately with cash, with in sequentially,

comment growth declined portfolio. year-on-year advances, in XX% the briefly I'll despite on Finally, which

Now the just that credit with favorable Chris this consistent discussed. is quality trends completely

than we to not advances, turn are credit we borrowing at we this a be cycle. time, believe continue more the $X While billion which manage capacity to nearly seeing through in in pressure for maintain sufficient

is servicing streamlining to as recoveries means a service focused and further profitability. on Our group enhance and

Now XX Slide wrap comments I'll position. my on up capital talking by our about

capital remains assets, rating at and agency ratio as which is Our net XX% solid regulatory by worth both well rock requirements. measured above tangible to

Now in we've would patient some doing. manner. a so this And opportunistic we we been that stated we've of would and do exactly deploy but that's capital, what disciplined,

acquisitions, As cusp primary Jay our future Ginnie's including our well XXXX. of of will commented, rather profitability HomePoint than mindful be we're take end including and on for going of the forward. minimum The one, rules, our the OTC in as leverage, will and pending expectations, regulatory risk-based which help likely us lift target but capital we're them the driver of as strategic returns incremental initiatives returns the at sustain effect

don't current high-yield long-term spreads market, is of as source debt preferred credit our the our profile. Additionally, strong view we consistent with and financing just

and operating base investors. MSR investing servicing, deploy and of and search our repurchases you, for growing we internally subservicing returns to both we'll DTC And of and into our including in We're continued costs with course, lower strategic leverage clients. unit capital of acquisitions initiatives best the continue stock in on the for shared platform focused expanding

call to like I'll presentation. now for listening to With Q&A. turn to our that, the I'd Ken back And for you thank

can And we Yes. start now please? session, the Thanks, Q&A Chris, Kurt.

Our Barker Piper from first Sandler. [Operator question Kevin Instructions] will of come

Your line is open.

taking -- given Good what your Love us we've on XXXX? and the given income, the for speeds year on service are for questions. for you little any Just morning, speeds is prepay quarter. on of into pretax hear your back even this Can guidance expectations Congrats your below early well view running maybe macro to thanks going a more my in a great give half detail million had. servicing obviously environment. just it, $XXX expectations prepay

Sure, It's Curt. Kevin.

quarter speeds that in slightly in Again, and they we're forecast So the X% $XXX up kind CPR and we've point in up million, in not the the be significantly. around in of we're book, our even were second the forecasting time continuing to from -- seen to seeing our where this with but activity July.

say we're a I'd we work doing. we offsetting our increase And year. other That's about in go of call bit and Kevin, as little it's efficiencies center the building is the some process slight Chris. that through the talked

as in course, in So but you'll the more expense see CPR that goes on. And saves year of see a annualized slight all XXXX. increase you'll

in long ROE had right Okay. I end an And low that Do that Or ROE quarters servicing given And the range to given of then to there expect XX%. several outlook continuing put end you going -- Thank operate for close long now you there higher do the ago, anticipate at over target, term, believe, towards that you are you. where you're drift XX% you you it. to very out was to the income? the just or today?

that we think then be that long-term, at originations, come higher that put we to And to us, we the or back operate for But we that a range. XX% eventually, us in that the Well, guided the higher. XX% we'd the market. out, is we've reasonable certainly which course, to to range, and end if And long range big without change in over macro guidance will which in stay we'll think any the higher see was be over to spike when absent comfortable trend we in I says again, expected that the a in it saw.

on feel to Servicing just the would allow within of higher range, that operate midpoint the or in maybe the Just environment like you a Do the segment? particularly that. follow-up end macro given the you efficiencies, current

as the say to we're at we're else one of continuing platform nailing rate without invest said, efficiencies a in Well, I'd in number, lot I to no seeing industry a a down is. the and specific us

range much more I to almost the should there So bottom be now. that easy the think of we're and future -- should achieve,

yes, I And range. of performing that very hope a would high now. range that bottom level of than company would be there So in is a I are at mean, the of the at the more -- lot we middle the

So I in if maybe anything, the the guidance year think now give But we're given with to maybe we've we'll next and maximum going the you. rises minimum sometime stick guidance for rises. says that

Chris, you you Kurt. thank thank Okay,

Thank you Kevin.

Thank you.[Operator Instructions] Our next question will come from Kyle Joseph of Jefferies.

open. Your line is

like my good more I side. morning the quarter. for Thanks strong in But Hey focus a just guys. taking congrats to guidance maintained on wanted I guys of questions. terms origination you the down move on there kind your And channel? there. it know gain looks a Is just that doing us on or mix margins what specifically sale of a and for we're give sense shift margin, quarter-on-quarter. function a expectations of your bit came by

more mix all correspondent. shift, you saw It's

it's mix purchase more and a purchase margins had There's bit tighter refi, going nothing just bit on. just are but little little also shift. the in a We else

fact, of should the ticking In our margins of full Project realizing all benefit are we year up as be Flash.

it We're think of now you eventually and in and rolling Flash down costs post XX% out was, I saw the chart the funding close. through midst year-over-year. but are operating

down. So our costs actually coming are

actually coming unit costs down. are Our

margins, going the all but number shift is mix that bit. overall around to that's a move the So little helping

quarter, are inventory inventory replace in that the sales? of that same to sales as flat. read inventories inventories And despite strong should remains getting kind were obviously, the Is it. strong pickup or Got -- pipeline that we but for in on the Xome, then

of this mod I think short what's really happen not on to whole with program. going the in there's pandemic term, clarity lot a

cautious forecast. a little we're mind fees in when to to be that we So to going Keep modify a it. program that going do incentive follow paid we we're what to in loan,

money. $XXX financing of said So not Mr. as of million reduction a of we're in so quarter had of generated cash we tremendous And in course We amount cash. Kurt advances a that. the making Cooper is

to what. of no money matter On to volume making delay there's is to Cooper this definitely in that's the going mean Mr. of Mr. a good to it's don't But because program. get going normal due the a So balance, this quarters for but pandemic it if sales or be return how of bulk long it's Cooper, know take modification to two and I a will through -- year program. foreclosures longer

guidance don't know we're we you somewhat So really uptake be. what will rate giving conservative because the there

Meanwhile, we've in better Xome been in never It's the platform. invest to shape. actually continued

continue to We clients. win

We more. and to foreclosure know continue matter if to to really if a We just continuing could impact actually a when. and don't the to latest the it win of comes share, program, not matter is FHA that to point, vision, to it's Chris' And delinquent answer pipeline just the itself share. what win perform platform well there. is But going be market really continue of

questions. Got it. answering Thanks the much for very

you. Thank

BTIG. of next Thank will from come Hagen you. [Operator question Our Eric Instructions]

line open. is Your

are Hey morning. Good you doing? how

guys servicing more and maybe leverage availability the of banks valuations MSRs any those think even Is there sellers And impacts to the to community? demand provide supply expectation seller generally, banks and you you expectation from think and you transactions? for noted I for the be financing for MSRs. for of how about nonbank it maybe for think,

we is that. we'll that waiting Chris. We've We're relationships already more. mean banks and the that depending I'll market to This have seeing of just banks a see on start talked are good probably to come with very capital see. number to what rules with

expect So to lots come see of we market. product to

have to any actually ability be would direct a kind established. financing sale. We're of impact looking I to unusual our true essentially a financing, terms purchase. banks of for our we not think that In finance have and would

not financing, many occur, going financing to really it's add? may you change. I don't partners I expect expect that. our but do nor know with Kurt, So to established and years affect we've want don't But that had don't that our to for

is look, financing HomePoint mean, strong. billion the up acquisition. I I added lined to got We've very for Yes. fruition. think quarter that We us we last $X.X indicated for came that that financing another line

And stable. as do very our see meet And still we banking basis. all up regular to in we partnerships lining a think financing. they're with strong being on banks interested very very, very, I and pretty continue

I So don't point, to Chris' need our financing necessarily from think we sellers.

enough we've think existing got partnerships. from I our more than

good that expect Maybe MSR go you to account the own detail. could All achieve your detail might around versus that Yes. That's what Yes. you're how what to select MSRs you're fund? Maybe for right. you'd expecting as share fund some into with launching? well

on I over an Right into quarter. that in we're to few focus get now that. evidenced think fourth going fundraising where to don't part was which focused think is closing on say we'll integral years. of here we're we've the years, a But XX I platform, I on going over the

see and enough market to there's there coming today. We is to aren't a many market just of product deal market. needs the not in that fund, fulfill buyers every but certainly in and the our a plenty market, It today, buyer's

what And that run product. You the have Cooper, fund our on servicing be we intent independently can our industry-leading ability of of to as it -- of buy. advantage capabilities you take source well is selective will the to as be very it Mr. will but

this all can those we're we've fund. to strong be and that very, going our leveraged, capabilities capabilities make available to very partners got in So in-house that

buyers you at over I in if record, together. And look track would mean, our financial we're portfolios we've I partnered add, acquiring just

record we would buyers. And we there's track number think so expect a of and of continue. And others, with that we to have strong financial a working

Mr. to that capabilities. in our as and lean point leader want in really on Cooper look the acquisitions Chris' to So

be a that So great we think partnership. will

yes. Yes,

price Do the at you you handy have last year? good. guys weighted which stock Sounds have repurchased average over the

Yes.

little believe I over So a over months, the it's last $XX. it's X bit --

you the Eric. me Let number, get exact

guys, appreciate it. Thank hunt as you you much for Well, very that.

Yes, we'll a I out. put it's think $XX share. it about But

Thank much. you guys very

of Instructions] will Harter you. Thank from Credit question Douglas come Next [Operator Suisse.

Your line is open.

Thanks.

to DTC or looking is that there about whether do about talked acquisition? just You looking little organically it Can platform. expand talk through look a would and you you what the bit to to you're accomplish

customers. looking in look universe the tremendous about some there's -- I a Doug, the think buyers, at platform a bank they're those there's value if of today, primarily, you think ultimately because you the financial even strong recapture for retaining universe, if

we've potential had inbounds several respect can capability around leverage recapture? so partners And to with those our

financial first they buyer to client advantage the with, of Chris capability that And with have familiar the we we're familiar in take mentioned and so DTC us, that they're platform. that a is the want

going of the we few that out of that if think financial capability. institutions next of a kind look of there's and a be partners lot to take to advantage And lot you want years, other over potential

-- white offer be built of able we'll we've build so process to the a or clients. label to So of that of number in that capability, finalizing the

it. Got

and you kind looking what still I acquisition focus kind or purchase of remain new kind So expanding guess expand the client or to on are recapture DTC? of the of would while

continue. Well, we've purchase internal seen significant improvement we DTC recapture, to in expect that and our

certainly be be on improve and but the of in, an So it refinance. to element share on it, lion's invest of and continue that something I to think continuing would it's focused that we're that be will will

average year-to-date price quickly, terms but in so Eric's of the for the questions Just to last stock. of $XX-and-change answer the quarter for

or Year-to-date full year?

X It's months. the last little $XX. been a over -- for $XX Yes,

Thank And George KBW. Instructions] our next of come question will from Bose you.[Operator

is Your line open.

when one wanted talk then the to cadence? just the servicing in wanted day platform boards does back close incremental on come MSR just -- -- on the upside guidance to of see I go the XQ pickup sort morning. just good when to a the about other to revenues. -- the Should HomePoint at sort guys, Hey onto of there, your and we

Yes.

correctly, You're Bose. looking at that

the of end going year. the think Although, that of board tail part biggest to at the I is right

be modest, but 'XX. full see of in the you'll of will it benefit So course, it

guided at And presentation right? a acquisition accretion, we and X% I the about the think

is mean, guess the And I Great. on gave of And on the I Xome going roughly -- the assume Corporate corporate then guidance difference rest forward in plus the is expense $X earnings flat? the you of HomePoint we segment, interest just Okay. terms the then should on million

right I we're Yes. now, rest Corporate flat. of mean seeing the think I essentially

come continuation Obviously, through and operations see acquisition continuing that QX, will QX some we've of to got along of. going You're onetime of in these the with charges charges. some

from in of year back well? And the the onetime million deal $XX be half Okay. then there'll gain the the collapse as

That's right.

again we're share, that's gain and comfortable $X acquisition, So was we the onetime purchase which And yes, initially then from that. fairly guiding per that. very again, said around conservative we're bargain the to

Okay, thanks. great

come will Next of question Giuliano Point. Instructions] Thank from Compass you.[Operator Bologna

Your line is open.

back in origination Good platform of sub-service. kind in off to material source expect as the there. DTC new on some And morning is sort the a MSR continue DTC to Maybe And feeds a components new platform Obviously, increase leads of realize line portfolio of Should on performance. that hit timing that should been that DTC roughly delay those great into to there's volumes you quarter we segment. the from 'XX? albeit MSRs, grow and book growth, with mostly and switching the help growth has another of a forwarding of books? to congratulations of continues I own terms that but portfolio

inventory, right, That's with exactly got Giuliano. Yes. opportunity. It's -- we more more

-- portfolio a do. exactly All every the different. going little we average, not same. And pool so are some more are different. to things originations granted is the But more those we're there's Coupons the on have,

transaction? quick Rushmore, one looks from That thought tangible was in the a $X.XX makes kind I quarter. share. million value of one And related then was of intangible rough recognized the that book there the sense. to Is like $XX that impact a it

was And look, contracts. Yes. of the platform purchase the the Rushmore that to and due

it a So money over we on. -- accrete amortizing platform. to will quarter from on $XX and earnings be expected this million That the did the spot basis. for see make we that you're probably and time. offset We But downwards do see Rushmore go-forward will even

the Or in has the marketed but if if integration a already? And then is the partnership have about the to there. clients transaction one Thinking to and material be last the soon sense as to one the they're still declines? platform Do and integrated be all whole marking been the of you it future. and business in time, phase taking it

Yes.

to this The referred months complete. years. it new another go been our XX there's in -- new score marketing is again, technology a to think they're with There's are because time They're is I with this as the servicing of the Clients wouldn't technology first -- nine integration it. not And integration Finxact. discussing is clients. of them I calling cloud-based Fiserv's say on even before. probably available

So there's still some go. time to

not just well the think team progressing things are I team. Fiserv very, but working the closely very with

feel look, a we And technology. it's great

us, at we operations and work see our look directly out. For can enormous amount manual coming of

very, this to going to a that's 'XX turn I of going we're be other think that's the servicers. going corner. apply think wouldn't very to to as But I attractive --

heavily marketing at will think of of clients probably the I 'XX. in expectation 'XX with the that to will middle beginning begin it they the start of maybe end migrating that the platform, 'XX,

Finxact both the project and long-term a But making us. itself; the this is this very large and company world class. integration for So in investments ours is technology are

So the promising. I is very, very upside think

partnership exciting has than been And really, historically. the today with is even Fiserv more probably

you we ability not base, really If existing at this of base, Fiserv to look the integration, clients the client through and once only client it's kind attractive. Fiserv the but take to it complete servicing move

the And here. so extremely opportunity I about excited think we're

for that color. back much so and I the I’ll jump really you. in appreciate for answering you thank queue. Okay Thank the questions

you Giuliano. Thank

Jay like closing see questions the back to now turn to Thank remarks. further in you. would conference no for I the Bray I queue.

questions. joining for for be the today everybody it. you we'll Really and call, appreciate available later Thank

This for participating. all concludes call. you today's conference Thank

disconnect, have day. You pleasant now and may a