COOP - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and thank you for your patience.

You’ve joined the Mr. Cooper Group’s Third Quarter 2018 Earnings Call. [Operator Instructions] As a reminder, this conference maybe recorded. I would now like to turn the call over to your host CFO, Amar Patel.

Amar Patel

like you I’d Mr. everyone, morning to to welcome Good XXXX Cooper quarter call. Group’s third earnings

from is the CEO, today us Joining company Jay our Bray. and Chairman

you release Before our Information available section get started, website would Investor to we www.mrcoopergroup.com. our I from the quarterly earnings and remind press of supplement are like that

expectations earnings be available containing the our results measures in any statements risk reconciliation we during the on can referenced, filings; and Factors of uncertainties. our In financial a to and Form supplement today that materially found be earnings may call release X-K website. in will about that addition, release actual quarterly supplement. are today’s including including GAAP also non-GAAP the and Information those make in forward-looking cause SEC to measures quarterly differ from to detailed measures are filed the subject

XXXX. presentation months to the XX, July the and X, respect respect Mr. and includes periods to different separately the for period Successor. will X, months interim the has Cooper the fair of Before Jay labeled a XXXX. to the would our to three column The a XXXX of the the ended of "Successor” financial combines merger of to Nationstar. now ended results to filed the end from non-GAAP Cooper’s XX, referenced acquired from the Company when I following the through are and Jay that and “Combined” the as like September as Predecessor both week. combined in "Predecessor" acquirer results is July XXXX, provided assets above Financial Successor All Mr. financial to presentation. basis three and are XXXX reflected column Mr. liabilities measures, under presented Statements XX, the the compared Consolidated The respect September date reflect be over where period Successor assets for of and With reflect GAAP. close values of the results of XX, third of for will the meaningful September merger are financial the more and statement the the as with Nationstar from through XXXX, Predecessor to which July Predecessor considered quarter results presents was merger the accounting also the the financial financial see August for was the you go become its XX, the changes be determined at with results, Cooper’s turn XX-Q, by call Bray. used I’d XXXX to like this accounting results over liabilities

Jay Bray

Thank and everyone. Amar, you, hello

quarter merger first can Cooper Inc, company. the for completed WMIH extraordinary was see the XX-for-X We changed you Corp on symbol an with ticker this As stock split. the COOP, the reverse and subsequently Mr. Group, to finalize the renamed page, the our company

of third shareholder will party more are value. create Today committed We opportunities identifying I to the to announcing into originations shortly. business in Assurant ranked its Servicing Xome of industry, and X.X among achieved to points closing acquisition, Correspondent we addition top the the revenue the get market to and XX%. basis every acquisition profitability. we Union, remain strides Pacific In in the which XX made segment. increased

segments, grow new home including continuing like and make recapture per and investments technologies increase designed to strategic all We’re revenue customer. our products to to intelligence, customer

results. discuss let’s the third Now, quarter

servicing basis properties $XXX million income profitability of million million pretax per adjusted the increase earnings and Xome party $XX of adjusting portfolio quarter. funded third at of prior reported the on adjusted points to from Servicing XX% over earned billion. diluted end quarter. of is we $X.X X,XXX the share, $XX quarter, a the or increase X% which XX% billion X.X a $XX For $X.XX from generated volume. share Originations revenue sold delivered and adjusted pretax earned income of

and from higher quarter-over-quarter a delinquency billion the Slide throughout also than $XXX better expected be with in great points X.X billion quarter. due again quarter ending of with Servicing for favorable of Prepayment to decrease approximately and another the MSR to and XX% to was X. Let’s million or other take in related as improving quarter a by adjusted expense mostly trends it look X.X move had continue servicing profitability float ordered business. $X quarter million increase to basis income interest in achieving portfolio closer a of $XX income income. at the perform customers. $XX We’ve financing profitability The pretax million the from prior

For the have by billion the These more than billion X% board. year, to our of fourth $XX end portfolio quarter, scheduled already take targeted should which achieves transfer our growth. to $XXX we the

growth the prepayment continued capture for opportunities we to XXXX propelled of confident further savings initiatives. on environment are excess year for opportunities. remain full a the in positioned well these profitability We cost achieving by basis points adjusted average in significant and addition, are and X In lower

So let’s and our closer take growth. a platform look for path at

no track record no believe have If transfers more portfolio. growing profitability We exist every low company servicing have consistently be look cost, so to platform. space. XXXX and Slide and growing over done completed very done continuing cost and marketplace, at has large X, of you transfers a company lowest we we’ve financial other has in every the the provider the the we the other than We successful while that a system virtually in institution from

providing subservicing only growth. replacing and with and flow reductions, incremental principal but platform MSR sustaining self bulk from is also partners opportunities. existing originations Not Our

servicing For XXXX, achieve we will in the growth X% portfolio.

visibility For we XXXX, have board. we least at already what scheduled X% with have presently growth to to

rising additional continue Rising market is rates the capture improve to slower many and lead positioned from to share. lowest on also to interest profitability. prepayment provides available We leverage rates. competitive Being servicing market to the our lead which Servicing well scale and advantage to themes, capitalize to benefit value provider cost opportunities.

XX on and equates For example, point million book this as in to a for you to CPR in basis environment increase is at equates $XX Put about reduction, value one plus $XX of the an million annual can rates increase MSRS – servicing together page all into about and one the business. the our translates which see fantastic a pickup profitability.

recapture million insurance correspondent the XX,XXX funded was totaling to Originations loans, the higher which an lien the channel In quarter-over-quarter. last driven delivered $X.X channel. the revenue million direct move accomplishment adjusted the as by channel, and current have pretax which was same Now, billion, This $XX income, is billion quarter-over-quarter. primarily from quarter. is an let’s consumer margins. $X.X composed consumer increase $X.X X% and in amazing We’ve to This improved that’s our originations. environment. nearly volumes quarter, of seen we second refinance from we In also purchase meaningful in XX%, rates the improvements direct in

is tuna XX% nearly improve customers, solutions We in to personal their consolidation balance help feature app cash Currently are help our over a of our the consolidate we opportunity of to Intelligence Home sheets. to volume debt existing debt customers tremendous our have XXX,XXX and [ph] consumer using direct And flow. customer. our manage their

industry current in team see for originations interest is environment XXXX the the its the adjusted pretax proud participants. has current From accomplishments income challenges. really had been can environment I’m reviews has an for for who business. origination Given full $XXX and industry the however million our a our of its servicing, perspective, Anyone helped originations landscape rate target this market of rate that tough in environment. it’s environment, most

move Now, to Xome. let’s

we This field Xome service quarter, began income, was below but was orders quarter an imminent. Mr. discontinued internal knew the Assurant field platform acquisition Cooper services out million adjusted in Xome which of in earned the $XX original taking we the our target. the build originally pretax second once

market. will on opportunities Mr. up and has units to by Xome reduction been quarter-over-quarter a Cooper’s able relative market and the X%. services services Well, to revenues the a We Assurant grow the ramping field growing the to XXXX. well up experienced refinance Xome mortgage But has capture quarter-over-quarter, the fully aside, the and field MBA mid throughout has by integration XX% of transforming margin REO performed ramp continue in volume for XXXX, in X% in focus reduction

the revenue growth In post Assurant’s addition, XXX has business quarter the is Assurant to third-party plus XX% Xome We share. with addition the and the the third-party posed significantly the of in active third to third-party also revenue for acquisition of quarter. XX% exited further third-party with clients. The number shifted grew dramatically clients third-party compared to prior XX% at revenue, quarter business

are making investments Assurant, that future. new Before Xome another highlight our is area we want I we’d to where a for have meaningful

year field as Chief First, of Co-CEO Executive of member recently Ray Xome the the services new well estate as Solutions Genesis as serving and in expansion acquired record Xome as Ray the segments, and recently we’ve leadership, the the of the Hudson exchange, most Ray including Marshall. hired throughout the valuation Mortgage business. businesses President as Officer, for Directors real mortgage responsible we’ve Board markets, XX the as of track of and operations. success of and in invested Mathoda all & Capital and of oversee of will transformation title, integration growth across third-party including Assurant opportunities brings

with of to leverage the to plus in more Slide Assurant August, integrate Ultimately, improve will become valuations, to we Solutions, platform X. services, and And margins. the a clients, of about The title strategic have and the technologies clients talk move better to will and more working Now, The combined field Xome. Mortgage more mortgage team provider origination, have offer leading a active let’s clients. services company we market. a we into announced closing been Assurant, and business compliment best the In platform valuations, default Xome. provides revenues, and to products XXX

in Assurant. Xome the below historical we from businesses transform be to we very expect levels as title, term near temporarily and acquired the and services field valuation integrate We

and expansion businesses with the $XX Assurant related to are activities acquire Pacific into now our Assurant Union acquisition currently announce to do Pacific And or approximately right plans. The However, to for is and originator billion. servicing and of we entered an profitability at leading a ahead term portfolio absolutely Services latest the our we Mortgage of are let’s Xome. move thing of combining the agreement acquisition. have excited Xome that Today, Union a long financial. to

Mr. XX% complimentary is originations overlap product as with Cooper over XXX anticipate platform with annual that purchase the expansion non-QM. members company incremental billion there’s Mr. wholesale regulatory Specifically XXXX of integration is The Cooper them potential of of originations supports first approvals, it active presence in brings excess servicing Union to over closing to correspondent will and to we team walk and and the the time to Subject volume business Mr. his non-delegated Cooper’s at clients XX% Cooper’s We volume estimate enables quite which existing about approximately in expand Pacific billion board with $XX Mr. of into platform. and and delegated and of being $XX loans. only we our the offerings clients. quarter

So let’s and QX beyond. to move

about quarter the was a I’m excited come. what’s to third success, While great even more

be our servicing, to continues profitably. growing our For servicing portfolio focus

We volume the We progress for in the with X% our and pleased increased made servicing next cost the achieved originations, the focused bending growth Titan. while we our have am growth far Pacific and existing we from experience so Union. I improving And customer exceeding project have partners from on year are already curve. year this remain target with for

Pacific unique For revenues improve and Titan. I project tools to $XX active of manage efficiencies due we origination its to The and on integration greater that products incremental billion a customers plus clients firmly and personal is balance higher their have sheet. of technology platform profitability XXX to plus. believe we expected our of from capabilities to expect build XXXX, Union servicing provide help and combination volume

are we front, share to continually segments. all Xome the aiming across On increase market

shareholder our and excited the continues value remain through platform truly back future to team growing our differentiated our Assurant to we about operator now for capital in to unlocking a And our and hand full our Q&A. we is business disciplined prudent to XXXX. that, platforms strategies. look I’m manner our I’ll potential in it and And creating management be of shareholders. committed underway focus that Our integration the the our customers, of over forward members with profitably benefits

Operator

question first comes of Bose Our line George [Operator Instructions] from KBW. the of

open. line Your is

Bose George

good morning. guys, Hey

part earn-out? of of First cash that the the fund that an question happen? platform Union just you’re acquisition. going And that is for there more that just outlay to the on Pacific or going Is is with a for much MSR then origination or how’s cash to

Amar Patel

The for assets total mean, the is MRSs. price which primarily company looking primary a at, the it’s the Sure. the acquisition. purchase – company, is we’re of to related I

then the to purchase We we the will with co-investment of do be acquiring the normal transactions, funding facilities normal with bulk that of and or deals kind price of it assets the is company. related that

Bose George

the And accounting of just of the then Post the was transaction. deal, valuation DTA Okay. size a the questions couple allowance? on what

Amar Patel

to Right on merger $XXX it was close million.

Bose George

Actually not the but… DTA,

Jay Bray

He the is asking . allowance

Bose George

just allowance. Yeah. Yes, the

Amar Patel

For value is the full $X.XX billion.

Bose George

billion. $X.XX

Okay.

So minus $XXX just the that million?

Amar Patel

Correct? Yeah.

Bose George

million, quarter in expenses of any or that is And was Okay. terms $XXX deal And that related? all next expenses are then done deal there to the to related now?

Amar Patel

a price still accounting a about this window we a that, there to Obviously completed, feel complete transition No, a we is we’ve have ended may but up. there purchase some all be merger, where and with but good quarter that done. is the adjustments, is pretty window about year is was where That done.

any there, be there’s not going unless other to any adjustments there’s merger the expenses through So coming P&L. related other

Jay Bray

from and adjustments. I’m a you you but will, Yes, we have don’t have you have any GAAP related accounting GAAP up expenses, true to a to purposes, anymore doubtful it a merger more standpoint, to do if year. year expect purchase But for just

Bose George

from just Okay. last one me. one then And

On the of $XX much was MSR mark, million, how driven that rates? by the

Jay Bray

it. of all Almost

Amar Patel

Yeah. Almost all of it.

Jay Bray

Yes.

Bose George

Okay.

So.

Thanks. great. Okay,

Operator

you. Thank

from next of of Doug Our Credit question the line comes Harter Suisse.

question Your please.

Doug Harter

now look be for you XXXX, servicing Jay, improved. mentioned Thanks. as should profitability you towards

quarter? that sense, kind the from of I is half is a north the basis of basis guess that get the that you’ve achieved to six full third year or a six – level from trying point and points Just in

Jay Bray

also, we right. from we Well, call cost and has locked six, very I do like looking the But comments the in our then shared the confident where initiative momentum. think, project portfolio on of in and feel in at revenue it’s – type still growth we definitely the We’ve seen have we we’re in reductions. full what been kind

the for next we So year a to certainly above think be and I year would six half. expect

Doug Harter

of Yes. Pacific about the you as how already kind of next opportunities like? Great. pipeline? you’re have looks acquisitions There of view obviously at looking what year. I in larger transactions, growth that a for talk out other can then additional locked there X% And pipeline kind do guess like Union the of guess, you lot are or I

Jay Bray

lot it’s mean, really Titan, think you mean, do a we it I strong. we’re think Xome Union opportunity I what can Pacific be there’s with a improve can do we we our think can going if we to I there’s about and if selective take with and to hard core I think existing you with of earnings, origination over lot and dimension what look. will, think do not now a of and platform, time. Assurant growth what there

I So, the is pipeline large. think

present selective larger mindful strategic as There that a themselves. – lot we very on consolidation are I they to do. But of we’re opportunities going well. can be and opportunities there’s, think what of some

think I origination I pretty that’ll we’ve – given enter XXXX, rate very strong that the things already, you we side. some kind important feel kind of we of mean, great. given as a think that I on we’ve feel locked be and pack got in we actually growth

I things, chase think we’re we’re that’s not very you approach way going So disciplined going about to we’re think be in that it. just, should and to the

Doug Harter

Thank you, Jay.

Operator

Thank you.

from of Coffey comes question next Our Wedbush. Henry

please. question Your

Henry Coffey

Yes. during quarter. everyone. Very Good interesting morning

obviously didn’t and for basis with XXXX? a important it that servicing servicing So, the integration points, before to of assume will given to This a light a should you you little we an Xome cost, just then higher And at the six be now numbers going be the million. of but be of guidance $XXX expected half some because on terms would from that hard about little on us mortgage back should that merger. you’ve in the contribution front you didn’t related or the make at expect year comment

Jay Bray

within origination is from offset servicing? you’ll The Yes. you some see Xome think answer yes, from the short do Henry,

Amar Patel

own means as down factors origination Yes. seasonal prepaids the lower well. are typically Because volume in, These also come and right? factors

Henry Coffey

Right? Right.

of start to there. options your then terms do technology We’re the developing this technology? Ellie in vendors? Do And your project now acquisition, figuring origination you ability very, technology correspondent of Mae and at changing that its with big start users customers. access the Titan, popular look is putting in own mortgage small And technology as know because you I in you and you’re of Ellie a very business,

terms able might when are of thoughts at with operating be technology, to about mortgage in your you your what So take might you accomplish look you what where efficiency existing that?

Jay Bray

our think in we Yes, the unlikely it’s I near own, build term.

different I side. think than different at on correspondent we we the the do has, a when pack you look provider

So some we we’re of the evaluate platform. I think great well. next for best kind some short going we’re and going we’re that’s their move the customers dive They have is, be there. great and to but into the the portals. going technology and frankly efficiencies will there I make up we that best try XX from picking so to really a take and we to days platform, platform to think our of be build do actually take deep our to they’re But breed our decisions – some take to answer and best-in-class going forward think and us, own, unlikely as the I and for We think time and drive will great select

Henry Coffey

but out I like there years want broker, yes, – he my line that, rates of the It’s of anything, many to was you right have start obviously heard out, were with finally I product. sub a there credit? people so refinance. equity not cash mortgage are people like, with cash mean, out do X% the don’t analysis the I How just a did beginning about own talking

And problematic so a loan. And now line home asset, of opportunity, credit a a are was Whereas then, you that’s was then equity able great opportunity are in today of going of to which door, open problem, front? people on that so up of great be for today with accomplish that, an with was the where how we thoughts that what terms to what big might Mr. is that? Cooper your it

Jay Bray

massive opportunity. if Well, a a where we you for a ton XXX,XXX opportunities can the lien I say it’s think mean with debt makes – out them. their consolidation have refi first, cash someone just we think stick over I we look, we if customers sense refi month, can $XXX of and a that first

And that refi that say of is in the the loans. product I XX% cash would a now direct-to-consumer you and our doing so – consolidation we’re is or on first what debt out,

think I I I grow. so, here a And and we to massive there. opportunity that’s going to have it’s think And stay think

And We the product growing really to foundation. have product and are going Ellie to your of scenes, technology to Mae’s our about second significantly are of others our to that is compared mean, the the back platform won gets to of Henry kind gets behind a some question, small numbers a way are I the kind back overall just think technology the is we demanding. are now. origination’s, customers kind of lien Again, that’s think do pretty that but the actually and they

sheet LOS go that’s We’re It’s talk enabled, where at It’s of customer to of [ph], is an to them all best go way the be have solution. home heard at of loan, to going consolidation best and home ecosystem, is will my going be that. lien, could be version the and feature then in out could very credit. home look intelligence of us home to centered mortgage, a And tuna you’ve our be, a that’s could be building going tools a my their home. rocket line equity about personal It intelligence and right? customer like existing them our look and around experience, their about way, be talked that and That provide to loan to customers great liability us you’ve really, heard a it’s our really balance a debt we cash side for solution could allow about. a you talk and if app going second

going for customer for have the we’re best and so products find solution And available to those the all them. and

about we’re for is opportunity I it how massive that’s it. positioned So thinking think and think well it. we’re I do

Henry Coffey

Great. Thank you. Interesting quarter.

Jay Bray

Thank you.

Operator

you. Thank

from comes the of Barker line Our Jaffrey. next Kevin of question Piper

Your question please.

Kevin Barker

talk portion MSR the the you value the versus value then up amortization And Could fair this fair associated expense of with of the the what today? morning. MSR Good the about the quarter? amortized value mark with is

Amar Patel

is our a basis. amortized difference the The is value And differential Kevin. amount about between about the XX basis MSRs basis points Sure, between fair now point and cost value fair $XX approximately relative the to Yes. the XX million. is of to right there

Kevin Barker

buying a issue either just Okay. you’re it. to And you So the finance that or provide So Union, little on Thank you. right? then, going said in the just going finance to transaction assets, assets buying Would regards to you a just use debt through right? yourself, detail you’re do were transaction? more the then how going you co-funding you to basically Pacific to

Jay Bray

so not be financed buying it’s company the predominantly and Well, we’re we’re company, the we actually the assets just assets buying will co-invest. whereby the

our will we any talked – won’t we partners will but we’re if about be in be additional the have co-invest. as debt there – past, So you

Kevin Barker

and that companies paying cash from to for have think a co-investments whatever you you’re to then the good way So your basically order will Is in supplement that? other it.

Jay Bray

correct. That’s right. That’s

Kevin Barker

the what is with Union? capitalized the value Okay. associated And that of MSRs Pacific you’re acquiring then,

Amar Patel

in buying two is, is fairly market portfolio which believe recently The the old. assets. years that It’s I’m we’re a for portfolio, billion can into details. originated. price about I in we those not we $XX sure mean, get itself

Kevin Barker

Okay.

assume new relatively CPR, to low that is going So of government them I’m insured? MSR, most are

Jay Bray

is That correct.

Kevin Barker

the WMIH corporate and on a There’s you merger on plays big the [ph] servicing merger was, was another $XXX was detail two side and that, then, was how Could merger side. how And of the the how the that you that related you regards to with that in any you. the said then insurance the much out related related, one DTA? there laid exactly numbers. to and thank million out, what with to and Okay, that there adjustments

Jay Bray

Items entailed for related are Sure. item that they’re Xome, that purchase that Assurant not ends Nothing – listed then a to of million price else, adjustments, some sheet a million there an fixed and the assessment to that at predecessor, but company may price do price Xome and the balance $X we’ve essentially we for million $XXX in go of is had not related that. go but related which time balance we’ve purchase the and adjustments. of the DTA. of was everything million items they’re of outlined And $X Nationstar. so with sheet – re-class, having being fix related purchase a items up the the the the through the is liabilities P&L assessment of that was most of merger had of X/XX. When all merger date to to these WMIH for merger happens, accounting in $X others and that with through as through merger acquiring And is assets

is? just spot. It’s how At purchase kind adjustment. ending matter it million and of $XXX a get that what to gets it to that the that price what is end the is of balance sheet balance so the you is And

Kevin Barker

Okay.

fees to or that of prepayment was at expense the any associated the other And with like was that interest related issues or and merger? looks that, of more this so with adjustments

Jay Bray

the related of But is we prior some to also that those was debt. the enumerated Those when we part that outlined transaction. of there fees fees, call lot to things

Kevin Barker

Got It.

Okay. allowance second declined that future lower DTA Was the from number of quarter. in forma expectations $XX or due by And use then pro the for valuation to the DTA? the

Jay Bray

the allowance, the – think you beyond expect fully booking we out the valuation a to term, DTA, which the when final to which that to get particularly is slightly we I and was essentially below XXXX, there. that’s number utilize No, had that that through extended just $Xbillion got

Kevin Barker

your adjusted number a had basis you then, have to going worth roughly or that Is use rate. that EPS, your going which for an roughly on GAAP And million Okay. $X that your forward? implies taxes is number, you in adjusted adjusted on X% of what expectation you’re tax

Jay Bray

for will approximately use adjusted GAAP which it the the be basis, full be basis. We a XX%. From expect number to will X% about rate, a

Kevin Barker

Okay. Thank for taking you my question.

Operator

Instructions] Our line Mark from Barclays. of the [Operator next question comes DeVries of

Your question please.

Mark DeVries

and color Pacific Union I’m if sorry this any to got thanks. origination on Yes, give what servicing can creation Thanks. road? Is color give this. I businesses for opportunities a that your there efficiencies from and missed any the the can us expectations on how you on you’ve kind margins deal any with you of compared – for down the

Amar Patel

Yes.

of million think rate call $XX originations. is, run I it side, their origination the current On

we’re $XX around today million just and be And think somewhere conservative. between – they’re basis I to million we profitability. XX points in they’re I forecasting As – $XX think

of We’re, obviously. south slightly that

Amar Patel

side. correspondent On

Jay Bray

yes. yes, correspondent, On

Amar Patel

the higher margin clients our to they given XX basis their do but the correspondent, they Total and work the the products is than that’s consumer That’s close combination average. points direct on correspondence on have, business. of

Mark DeVries

Okay. on servicing the And side?

Amar Patel

though saying you’re deals of we it deal. to says teens market accretive all transaction. portfolio we even is like the think side, low type to and that hit we be this government servicing with us, returns mid to and Most On to look we’ve try of and at type

Mark DeVries

do deal least that a there in there bigger was, What the of Pacific Okay. just Follow-up air was materially Union this. think and kind given pipeline. the the near mean, was I than many is of one though. than, how this acquisitions? your at a on does there I curious, appetites kind other naïve out any I’m balls question question term for and maybe to

Jay Bray

Yes.

a about be billion selective It’s going – think standpoint, transaction. we’ve simple. size size it’s a we I think, itself about transaction to other of $XX those it’s of done servicing a think and said – the number it opportunities, portfolio like from Pacific Union we’re earlier, fairly pretty we as XX if you and

it’s So it’s complicated we – overly think there. not

we’ve On Tony standpoint, with good complicated more the we it an guys and time from been these between now is have and and – signing integration but as all origination team quite at days or Ebers over and closing working XX well. for integration

like certainly in think think overlap on any we XXX they we so going feel think there’s we I the and packy it’s, – it’s the we really, creative by don’t purchase. like and I opportunities, very stretch clients we it’s sidelines it but that, we, again, us volume, be of new very to doesn’t have and imagination. put the platform actually, like then about we when – think we sense XX% more So little

really, is we we is, complimentary the love we servicing origination think to what and very we So have. the platform

So type we’re constrained ton sense think not But going from makes of a to on I and be – we’re looking selective acquisition of at others. things. other clearly not that we’re

Mark DeVries

Assurant. and to the Okay, the you that’s margins talk that up acquisition? margins a with finally you helpful. of on and more Xome get And segment Could bit there kind your were then to where to little business plans improve about of prior the

Jay Bray

Yes.

different strategic different the and their how four of own they they kind it so, on was acquisition, at of a consolidate our and is, they go different companies, through to were strategy, kind to companies. if – acquired, those. four review And to going Assurant you think platforms I of back were they time three

in. stepped we So

back services novo the that made on couple Clearly already I assessing best trying us, of be grow we not they decision and to but get to now would technology the get to take determine are to have, side. and we’ve margins integrated a platforms to de to expect field the that the at. the what it’ll quarters leverage they that think We

little bit take So – a to it’s time. going little a of

I this they an think a all think some then she news, Ray, plan. our and number great doing laying and and the it with thing. again, great job over a the have doubles revenue, integrating out and revenue of then so And I our clients, good is takes of that’s is

to get us where but multiple it’s a it’s, we want So, complicated to quarters be. couple of to still, it’s It’s to going a take platforms. –

Mark DeVries

Okay, great. you. Thank

Operator

you. Thank

of Our America next of of question Bank comes from High Yield. Marc the Hamud line

Your open. line is

Marc Hamud

could two the of had of Fannie, Pacific like servicing I origination Amar. fire any and you and types Freddie, questions. Ginnie? on points On and give Jay Thanks, Union, mix

Jay Bray

actual It’s have predominantly if government. know percentages. I you don’t the Amar,

Amar Patel

The government. Right. is predominantly portfolio

is the or government, but a I it’s believe XX% predominantly, between agency and origination it’s type. There On mix XX%government.

Marc Hamud

Thanks. Can sense own servicing sub for servicing their service were if or they they a whether us you that? profitability? give their not or or

Amar Patel

portfolio obviously so were on their we’ll $XX scale own, size We’ve they of think their on own billion got the achieve billion. a platform lot I nearly on there. efficiency servicing and efficiencies $XXX and and is their

Marc Hamud

that lastly, update then number, see give anywhere $XX Got it. didn’t past, you corporate us an of in the see savings in And you from but on expense I savings there repeated where XXXX the release a going? Can million was annualized today? corporate the

Jay Bray

I’ll jump in and, let Amar correct me.

$XX and true million expense continue side down. pay on to where the year, million million, million overall a kind expense $XX I expense reductions clearly saves. as to entered or Therefore and interest of interest $XX the deliver corporate and was of interest debt are think it our the save plan we’re heads was less spin hard $XX We – pay and in because we ahead cost and was spin.

the more the debt. On part we changed, picture We, right? has the debt, took as obviously of merger, on

outlined we up clearly it’s But expense. our and corporate, day – think that you piece for know expense guys debt had the So a experience know fresh good typically we’re as kind a job take the we as at company. corporate exceeding a going you I of do, a debt in numbers teams we hard this look where given we’re of we through as and know, is our additional the about process those throughout overall, now that think and that going done hitting

So reduction of I we there, additional the opportunities expected year. piece. there From kind excluding expense definitely to think what had we some for be standpoint will hit debt but the an

Marc Hamud

Thanks that. and for it. Got Jay Amar. clarifying Thanks,

Operator

call the the back turn for to to and closing CEO, like I’d over any chairman Bray time, Jay this remarks, At sir. you. Thank

Jay Bray

and Have great chatting look further. your Thank forward you a appreciate really guys. I time day. to

Operator

a Ladies this sir. and for conference. have participation you Thank today’s and your gentlemen, wonderful Thank you concludes day.

lines your this time. at disconnect may You

Mr. Cooper (COOP) 8 Nov 182018 Q3 Earnings call transcript