Mr. Cooper Looking at a 2Q19 MSR Markdown of at Least $334 Million | NRZ Message Board Posts

New Residential Investment Corp.

  NRZ website

NRZ   /  Message Board  /  Read Message

 

 






Keyword
Subject
Between
and
Rec'd By
Authored By
Minimum Recs
  
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board
Msg  2890 of 2897  at  7/11/2019 4:24:08 PM  by

rlp2451


Mr. Cooper Looking at a 2Q19 MSR Markdown of at Least $334 Million

NRZ at risk for similar writedowns?

Mr. Cooper Looking at a 2Q19 MSR Markdown of at Least $334 Million
July 11, 2019 Paul Muolo
pmuolo@imfpubs.com

Mr. Cooper, the parent company of the nation’s third largest mortgage servicer, is bracing for a $334 million (at least) second-quarter markdown on its massive MSR portfolio, according to a new report from Wedbush Securities.

“What’s good for mortgage [origination] volumes is bad for mortgage servicing rights (MSR) values and with rates down again, we are expecting a fair value writedown that equals or more likely exceeds the $334 million writedown taken in 1Q19,” writes Wedbush analyst Henry Coffey.

As Wedbush and other research firms have pointed out: Mr. Cooper does not hedge its MSR positions, resulting in large non-cash marks when rates decline from quarter to quarter, and write-ups when interest rates increase.

Despite the anticipated MSR charge, Wedbush has an “outperform” rating on Mr. Cooper, noting: “The stock is cheap on a number of measures…”

At March 31, Mr. Cooper/Nationstar Mortgage serviced $631.9 billion of one- to four-family mortgages, according to Inside Mortgage Finance.


     e-mail to a friend      printer-friendly     add to library      
| More
Recs: 1     Views: 187
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board

Replies
Msg # Subject Author Recs Date Posted
2891 Re: Mr. Cooper Looking at a 2Q19 MSR Markdown of at Least $334 Million LoanRanger 5 7/12/2019 8:52:13 AM


About Us  •  Contact Us  •  Follow Us on Twitter  •  Members Directory  •  Help Center  •  Advertise
Not a member yet? What are you waiting for? Create Account
Want to contribute? Support InvestorVillage by donating
© 2003-2018 Investorvillage.com. All rights reserved. User Agreement
   
Financial Market Data provided by
.


Loading...