Mr. Cooper Group Inc. (NASDAQ:COOP) Q1 2022 Earnings Conference Call April 28, 2022 4:30 PM ET

Company Participants

Ken Posner - SVP of Strategic Planning and IR

Jay Bray - Chairman and CEO

Chris Marshall - Vice Chairman and President

Jaime Gow - EVP and CFO

Conference Call Participants

Kevin Barker - Piper Sandler

Giuliano Bologna - Compass Point

Eric Hagen - BTIG

Mark DeVries - Barclays

Doug Harter - Credit Suisse

Kevin Barker - Sandler

Operator

Good day and thank you for standing by. Welcome to the Mr. Cooper Group First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to your speaker today, Ken Posner. Please go ahead.

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, Chris Marshall, Vice Chairman and President; and Jaime Gow, Executive Vice President and CFO. As a reminder, this call is being recorded. Also, 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.

I'll now turn the call over to Jay.

Jay Bray

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

As we all know, the first quarter was extremely volatile with the conflict and humanitarian crisis in Ukraine, shocking the markets further supply chain disruptions leading the headaches for many industries, accelerating inflation forcing the Fed into action and the sharpest increase in mortgage rates and many years if not decades.

And really all of this has pushed the originations industry into a period of severe retrenchment. But for Mr. Cooper this kind of environment demonstrates the benefits of our balanced business model, which, by design, includes a much higher contribution from servicing than most of our peers. The key things for us in this environment, our first very robust growth and book value, second, a sharp ramp in servicing profitability in the coming quarters.