(COOP) Mr. Cooper - Ratings and Ratios

Mr. Cooper Group Inc. (NASDAQ:COOP) stands as a prominent non-bank servicer of residential mortgage loans in the U.S., focusing solely on servicing and originating loans without the overhead of traditional banking operations. This specialization allows them to concentrate on their core competencies, enhancing efficiency and service quality.

The companys operations are divided into two key segments: Servicing and Originations. The Servicing segment manages existing loans for investors, handling payment processing, investor reporting, customer service, and delinquency management, including loan modifications and foreclosures. The Originations segment focuses on creating new loans, reaching consumers directly and through partnerships with other lenders.

Operating under the brands Mr. Cooper and Xome, the company rebranded from WMIH Corp. in 2018, marking a strategic shift towards mortgage servicing after acquiring assets from Washington Mutual post-2008 crisis. Headquartered in Coppell, Texas, and incorporated in 2015, Mr. Cooper has established itself as a significant player in the mortgage industry.

Financially, Mr. Cooper boasts a market cap of approximately $6.9 billion, with a P/E ratio of 10.66, indicating reasonable valuation. The forward P/E of 7.66 suggests expected earnings growth. A P/B ratio of 1.41 reflects a valuation slightly above book value, while a P/S ratio of 3.5 aligns with industry norms for financial services.

Investors should consider the sensitivity of mortgage servicing to interest rates, as low rates can increase refinancing activity, affecting servicing fees