# EDGAR Filing Document

**Accession Number:** 0000933136
**File Stem:** 0000933136-25-000071
**Filing Date:** 2025-7
**Character Count:** 241063
**Document Hash:** 746fd274675ae4f85a59a08054a68349
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000933136-25-000071.hdr.sgml**: 20250723

**ACCESSION NUMBER**: 0000933136-25-000071

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 87

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250723

**DATE AS OF CHANGE**: 20250723

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Mr. Cooper Group Inc.
- **CENTRAL INDEX KEY:** 0000933136
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 911653725
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14667
- **FILM NUMBER:** 251141601

**BUSINESS ADDRESS:**
- **STREET 1:** 8950 CYPRESS WATERS BLVD.
- **CITY:** COPPELL
- **STATE:** TX
- **ZIP:** 75019
- **BUSINESS PHONE:** 469-549-2000

**MAIL ADDRESS:**
- **STREET 1:** 8950 CYPRESS WATERS BLVD.
- **CITY:** COPPELL
- **STATE:** TX
- **ZIP:** 75019

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WMIH CORP.
- **DATE OF NAME CHANGE:** 20150512

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WMI HOLDINGS CORP.
- **DATE OF NAME CHANGE:** 20120320

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WASHINGTON MUTUAL, INC
- **DATE OF NAME CHANGE:** 20061017

?xml version='1.0' encoding='ASCII'? coop-20250630

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549** 

________________________________________________________________________________________________________

**FORM 10-Q**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**<br>

**For the quarterly period ended June 30, 2025**

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**<br>

**For the transition period from _______ to _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Commission file number: 001-14667**

![mrcoopergrouplogor1a01.jpg](coop-20250630_g1.jpg)

________________________________________________________________________________________________________

**Mr. Cooper Group Inc.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **91-1653725** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **8950 Cypress Waters Blvd, Coppell, TX** | **75019** |
| (Address of principal executive offices) | (Zip Code) |
| **(469) 549-2000** | **(469) 549-2000** |
| Registrant's telephone number, including area code | Registrant's telephone number, including area code |

---

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common stock, $0.01 par value per share** | **COOP** | **The Nasdaq Stock Market** |

---

____________________________________________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ⌧&nbsp;&nbsp;&nbsp;&nbsp;No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ⌧&nbsp;&nbsp;&nbsp;&nbsp;No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12(b)-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large Accelerated Filer | ⌧ | &nbsp;&nbsp;&nbsp;&nbsp;Accelerated Filer | ☐ |
| Non-Accelerated Filer | ◻ | &nbsp;&nbsp;&nbsp;&nbsp;Smaller reporting company | ☐ |
| | | &nbsp;&nbsp;&nbsp;&nbsp;Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ⌧

Number of shares of common stock, $0.01 par value, outstanding as of July 18, 2025 was 63,993,269.

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**MR. COOPER GROUP INC.**

**QUARTERLY REPORT ON FORM 10-Q**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **PART I** | **[FINANCIAL INFORMATION](#i12e8730dadd24c319311717a982ffcbc_10)** | |
| Item 1. | [Financial Statements](#i12e8730dadd24c319311717a982ffcbc_13) | [3](#i12e8730dadd24c319311717a982ffcbc_10) |
|  | [Condensed Consolidated Balance Sheets as of](#i12e8730dadd24c319311717a982ffcbc_16) June 30, 2025 (unaudited) and December 31, 2024 | [3](#i12e8730dadd24c319311717a982ffcbc_16) |
|  | [Condensed Consolidated Statements of Operations (unaudited) for the](#i12e8730dadd24c319311717a982ffcbc_19) Three and Six Months Ended June 30, 2025 and 2024 | [4](#i12e8730dadd24c319311717a982ffcbc_19) |
|  | [Condensed Consolidated Statements of Stockholders' Equity (unaudited) for](#i12e8730dadd24c319311717a982ffcbc_25)the Three and Six Months Ended June 30, 2025 and 2024 | [5](#i12e8730dadd24c319311717a982ffcbc_22) |
|  | [Condensed Consolidated Statements of Cash Flows (unaudited) for](#i12e8730dadd24c319311717a982ffcbc_28)the Six Months Ended June 30, 2025 and 2024 | [7](#i12e8730dadd24c319311717a982ffcbc_28) |
|  | [Notes to](#i12e8730dadd24c319311717a982ffcbc_31)[Condensed](#i12e8730dadd24c319311717a982ffcbc_31)[Consolidated Financial Statements (unaudited)](#i12e8730dadd24c319311717a982ffcbc_31) | [8](#i12e8730dadd24c319311717a982ffcbc_31) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1. Nature of Business and Basis of Presentation](#i12e8730dadd24c319311717a982ffcbc_34) | [8](#i12e8730dadd24c319311717a982ffcbc_34) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2. Merger and Acquisition](#i12e8730dadd24c319311717a982ffcbc_37) | [9](#i12e8730dadd24c319311717a982ffcbc_37) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3. Mortgage Servicing Rights and Related Liabilities](#i12e8730dadd24c319311717a982ffcbc_40) | [9](#i12e8730dadd24c319311717a982ffcbc_40) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4. Advances and Other Receivables](#i12e8730dadd24c319311717a982ffcbc_43) | [12](#i12e8730dadd24c319311717a982ffcbc_43) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5[. Mortgage Loans Held for Sale](#i12e8730dadd24c319311717a982ffcbc_46) | [13](#i12e8730dadd24c319311717a982ffcbc_46) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6[. Loans Subject to Repurchase from Ginnie Mae](#i12e8730dadd24c319311717a982ffcbc_49) | [14](#i12e8730dadd24c319311717a982ffcbc_49) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7[. Goodwill and Intangible Assets](#i12e8730dadd24c319311717a982ffcbc_52) | [14](#i12e8730dadd24c319311717a982ffcbc_52) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8[. Derivative Financial Instruments](#i12e8730dadd24c319311717a982ffcbc_55) | [15](#i12e8730dadd24c319311717a982ffcbc_55) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9[. Indebtedness](#i12e8730dadd24c319311717a982ffcbc_58) | [17](#i12e8730dadd24c319311717a982ffcbc_58) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10. Securitizations and Financings](#i12e8730dadd24c319311717a982ffcbc_61) | [19](#i12e8730dadd24c319311717a982ffcbc_61) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11. Earnings Per Share](#i12e8730dadd24c319311717a982ffcbc_64) | [20](#i12e8730dadd24c319311717a982ffcbc_64) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12. Income Taxes](#i12e8730dadd24c319311717a982ffcbc_67) | [20](#i12e8730dadd24c319311717a982ffcbc_67) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13. Fair Value Measurements](#i12e8730dadd24c319311717a982ffcbc_70) | [20](#i12e8730dadd24c319311717a982ffcbc_70) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14. Capital Requirements](#i12e8730dadd24c319311717a982ffcbc_73) | [24](#i12e8730dadd24c319311717a982ffcbc_73) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15. Commitments and Contingencies](#i12e8730dadd24c319311717a982ffcbc_76) | [24](#i12e8730dadd24c319311717a982ffcbc_76) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[16. Segment Information](#i12e8730dadd24c319311717a982ffcbc_79) | [26](#i12e8730dadd24c319311717a982ffcbc_79) |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#i12e8730dadd24c319311717a982ffcbc_91) | [30](#i12e8730dadd24c319311717a982ffcbc_91) |
| Item 3. | [Quantitative and Qualitative Disclosures about Market Risk](#i12e8730dadd24c319311717a982ffcbc_130) | [53](#i12e8730dadd24c319311717a982ffcbc_130) |
| Item 4. | [Controls and Procedures](#i12e8730dadd24c319311717a982ffcbc_133) | [54](#i12e8730dadd24c319311717a982ffcbc_133) |
| **PART II** | **[OTHER INFORMATION](#i12e8730dadd24c319311717a982ffcbc_136)** |  |
| Item 1. | [Legal Proceedings](#i12e8730dadd24c319311717a982ffcbc_139) | [55](#i12e8730dadd24c319311717a982ffcbc_139) |
| Item 1A. | [Risk Factors](#i12e8730dadd24c319311717a982ffcbc_142) | [55](#i12e8730dadd24c319311717a982ffcbc_142) |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#i12e8730dadd24c319311717a982ffcbc_145) | [55](#i12e8730dadd24c319311717a982ffcbc_145) |
| Item 3. | [Defaults Upon Senior Securities](#i12e8730dadd24c319311717a982ffcbc_148) | [55](#i12e8730dadd24c319311717a982ffcbc_148) |
| Item 4. | [Mine Safety Disclosures](#i12e8730dadd24c319311717a982ffcbc_151) | [55](#i12e8730dadd24c319311717a982ffcbc_151) |
| Item 5. | [Other Information](#i12e8730dadd24c319311717a982ffcbc_154) | [55](#i12e8730dadd24c319311717a982ffcbc_154) |
| Item 6. | [Exhibits](#i12e8730dadd24c319311717a982ffcbc_157) | [56](#i12e8730dadd24c319311717a982ffcbc_157) |

---

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

***PART I. Financial Information***

**Item 1. Financial Statements** 

**MR. COOPER GROUP INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

(millions of dollars, except share data)

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
|  | *(unaudited)* |  |
| **Assets** |  |  |
| Cash and cash equivalents | $**783** | $753 |
| Restricted cash | **168** | 220 |
| Mortgage servicing rights at fair value | **11431** | 11736 |
| Advances and other receivables, net of reserves of $116 and $112, respectively | **1124** | 1345 |
| Mortgage loans held for sale at fair value | **2475** | 2211 |
| Property and equipment, net of accumulated depreciation of $144 and $157, respectively | **72** | 58 |
| Deferred tax assets, net | **149** | 230 |
| Other assets | **2297** | 2386 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**18499** | $18939 |
| **Liabilities and Stockholders' Equity** |  |  |
| Unsecured senior notes, net | $**4902** | $4891 |
| Advance, warehouse and MSR facilities, net | **6161** | 6495 |
| Payables and other liabilities | **1956** | 2322 |
| MSR related liabilities - nonrecourse at fair value | **381** | 418 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | **13400** | 14126 |
| Commitments and contingencies (Note 15) |  |  |
| Common stock at $0.01 par value - 300 million shares authorized, 93.2 million shares issued | **1** | 1 |
| Additional paid-in-capital | **1063** | 1077 |
| Retained earnings | **5257** | 4971 |
| Treasury shares at cost - 29.2 million and 29.6 million shares, respectively | **(1222)** | (1236) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | **5099** | 4813 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $**18499** | $18939 |

---

*See accompanying Notes to the Condensed Consolidated Financial Statements (unaudited).* 

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**MR. COOPER GROUP INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

(millions of dollars, except for earnings per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service related, net | $**472** | $485 | $**912** | $963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on mortgage loans held for sale | **136** | 98 | **256** | 184 |
| Total revenues | **608** | 583 | **1168** | 1147 |
| **Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries, wages and benefits | **191** | 168 | **384** | 327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | **139** | 132 | **376** | 290 |
| Total expenses | **330** | 300 | **760** | 617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | **217** | 189 | **406** | 347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **(217)** | (187) | **(430)** | (357) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | **(1)** | (8) | **(12)** | (11) |
| Total other expense, net | **(1)** | (6) | **(36)** | (21) |
| Income before income tax expense | **277** | 277 | **372** | 509 |
| Less: Income tax expense | **79** | 73 | **86** | 124 |
| Net income | $**198** | $204 | **286** | $385 |
| Earnings per share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $**3.09** | $3.16 | $**4.48** | $5.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $**3.04** | $3.10 | $**4.40** | $5.83 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

*See accompanying Notes to the Condensed Consolidated Financial Statements (unaudited).*

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**MR. COOPER GROUP INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

(millions of dollars, except share data)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | |
| | **Shares <br>(in thousands)** | **Amount** |<br>**Additional Paid-in Capital** |<br>**Retained Earnings** |<br>**Treasury Shares** |<br>**Total Stockholders'<br>Equity** |
| Balance at March 31, 2024 | 64719 | $1 | $1051 | $4483 | $(1130) | $4405 |
| Shares issued / (surrendered) under incentive compensation plan | 63 |  | (2) |  | 2 |  |
| Share-based compensation |  |  | 9 |  |  | 9 |
| Repurchase of common stock | (298) |  |  |  | (24) | (24) |
| Net income |  |  |  | 204 |  | 204 |
| Balance at June 30, 2024 | 64484 | $1 | $1058 | $4687 | $(1152) | $4594 |
| Balance at March 31, 2025 | **63983** | $**1** | $**1052** | $**5059** | $**(1222)** | $**4890** |
| Shares issued / (surrendered) under incentive compensation plan | **6** | **—** | **(1)** | **—** | **—** | **(1)** |
| Share-based compensation | **—** | **—** | **12** | **—** | **—** | **12** |
| Net income | **—** | **—** | **—** | **198** | **—** | **198** |
| Balance at June 30, 2025 | **63989** | $**1** | $**1063** | $**5257** | $**(1222)** | $**5099** |

---

*See accompanying Notes to the Condensed Consolidated Financial Statements (unaudited).*

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**MR. COOPER GROUP INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

(millions of dollars, except share data)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | |
| | **Shares <br>(in thousands)** | **Amount** |<br>**Additional Paid-in Capital** |<br>**Retained Earnings** |<br>**Treasury Shares** |<br>**Total Stockholders'<br>Equity** |
| Balance at January 1, 2024 | 64599 | $1 | $1087 | $4302 | $(1108) | $4282 |
| Shares issued / (surrendered) under incentive compensation plan | 720 |  | (46) |  | 19 | (27) |
| Share-based compensation |  |  | 17 |  |  | 17 |
| Repurchase of common stock | (835) |  |  |  | (63) | (63) |
| Net income |  |  |  | 385 |  | 385 |
| Balance at June 30, 2024 | 64484 | $1 | $1058 | $4687 | $(1152) | $4594 |
| Balance at January 1, 2025 | **63581** | $**1** | $**1077** | $**4971** | $**(1236)** | $**4813** |
| Shares issued / (surrendered) under incentive compensation plan | **408** | **—** | **(40)** | **—** | **14** | **(26)** |
| Share-based compensation | **—** | **—** | **26** | **—** | **—** | **26** |
| Net income | **—** | **—** | **—** | **286** | **—** | **286** |
| Balance at June 30, 2025 | **63989** | $**1** | $**1063** | $**5257** | $**(1222)** | $**5099** |

---

*See accompanying Notes to the Condensed Consolidated Financial Statements (unaudited).*

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**MR. COOPER GROUP INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

(millions of dollars)

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| **Operating Activities** |  |  |
| Net income | $**286** | $385 |
| Adjustments to reconcile net income to net cash attributable to operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax expense | **81** | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on mortgage loans held for sale | **(256)** | (184) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for servicing and non-servicing reserves | **36** | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value changes in mortgage servicing rights | **728** | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value changes in MSR related liabilities | **(8)** | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization for property and equipment and intangible assets | **29** | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on MSR hedging activities | **(180)** | 225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on MSR and excess yield sales | **12** | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating activities | **58** | 45 |
| Sales proceeds and loan payment proceeds for mortgage loans held for sale | **18556** | 6946 |
| Mortgage loans originated and purchased for sale, net of fees | **(17844)** | (6786) |
| Repurchases of loan assets out of Ginnie Mae securitizations | **(947)** | (744) |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances and other receivables | **166** | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | **177** | (71) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payables and other liabilities | **(369)** | (185) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash attributable to operating activities | **525** | (136) |
| **Investing Activities** |  |  |
| Property and equipment additions, net of disposals | **(26)** | (16) |
| Purchase of mortgage servicing rights | **(351)** | (1498) |
| Proceeds on sale of mortgage servicing rights and excess yield | **248** | 261 |
| Other investing activities | **(21)** | (20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash attributable to investing activities | **(150)** | (1273) |
| **Financing Activities** |  |  |
| (Decrease) increase in advance, warehouse and MSR facilities | **(341)** | 621 |
| Settlements and repayment of excess spread financing | **(30)** | (33) |
| Issuance of unsecured senior notes | **—** | 1000 |
| Repurchase of common stock | **—** | (63) |
| Other financing activities | **(26)** | (52) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash attributable to financing activities | **(397)** | 1473 |
| Net (decrease) increase in cash, cash equivalents, and restricted cash | **(22)** | 64 |
| Cash, cash equivalents, and restricted cash - beginning of period | **973** | 740 |
| Cash, cash equivalents, and restricted cash - end of period<sup>(1)</sup> | $**951** | $804 |
| **Supplemental Disclosures of Non-cash Investing Activities** |  |  |
| Purchase of mortgage servicing rights holdback payable | $**8** | $45 |
| Sale of mortgage servicing rights holdback receivable | $**9** | $2 |

---

<sup>(1)</sup> The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed consolidated balance sheets.

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2024** |
| Cash and cash equivalents | $**783** | $642 |
| Restricted cash | **168** | 162 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash, cash equivalents, and restricted cash | $**951** | $804 |

---

 *See accompanying Notes to the Condensed Consolidated Financial Statements (unaudited).* 

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**MR COOPER GROUP INC.** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

(millions of dollars, except per share data, or unless otherwise stated)

**1. Nature of Business and Basis of Presentation** 

***Nature of Business***

Mr. Cooper Group Inc., collectively with its consolidated subsidiaries, ("Mr. Cooper," the "Company," "we," "us" or "our") provides servicing, origination and transaction-based services related to single family residences throughout the United States with operations under its primary brands: Mr. Cooper®, Xome® and Rushmore Servicing®. Mr. Cooper is the largest home loan servicers and a major mortgage originator in the country focused on delivering a variety of servicing and lending products, services and technologies.

The Company has provided a glossary of terms, which defines certain industry-specific and other terms that are used herein, in Item 2, *Management's Discussion and Analysis of Financial Condition and Results of Operations*, of this Form 10-Q.

***Basis of Presentation***

The interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Reports on Form 10-K for the year ended December 31, 2024.

The interim condensed consolidated financial statements are unaudited; however, in the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair presentation of the results of the interim periods have been included. Dollar amounts are reported in millions, except per share data and other key metrics, unless otherwise noted.

***Basis of Consolidation***

The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, other entities in which the Company has a controlling financial interest and those variable interest entities ("VIE") where the Company's wholly-owned subsidiaries are the primary beneficiaries. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date the Company ceases to be the primary beneficiary. The Company applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and owns less than 50% of the voting interests. Investments in certain companies over which the Company does not exert significant influence are recorded at fair value, or at cost upon election of measurement alternative, at the end of each reporting period. Intercompany balances and transactions on consolidated entities have been eliminated.

***Use of Estimates***

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates, and such differences could be material, due to factors such as adverse changes in the economy, changes in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific customers.

***Recent Accounting Guidance Adopted***

The Company did not adopt any accounting guidance during the six months ended June 30, 2025 that had a material impact on its condensed consolidated financial statements or disclosures.

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**2. Merger and Acquisition**

*<u>Merger of Mr. Cooper Group Inc. and Rocket Companies, Inc.</u>*

On March 31, 2025, Mr. Cooper Group Inc. and Rocket Companies, Inc. ("Rocket") announced entry into a definitive agreement for Rocket to acquire all of the outstanding shares of Mr. Cooper in an all-stock transaction for $9.4 billion in equity value, based on an 11.0x exchange ratio. The transaction is expected to close in the fourth quarter of 2025, subject to approval of Mr. Cooper shareholders and the satisfaction of other closing conditions, including customary regulatory approvals.

*<u>Acquisition of Certain Mortgage Operations of Flagstar Bank, N.A.</u>*

On July 24, 2024, the Company entered into an asset purchase agreement (the "Asset Purchase Agreement") and an Agreement for the Bulk Purchase and Sale of Mortgage Servicing Rights (the "MSR Purchase Agreement") with Flagstar Bank, N.A. ("Flagstar") in contemplation of one another (collectively "the Flagstar Transaction"). Per the Asset Purchase Agreement, the Company agreed to purchase certain MSRs held by Flagstar. The Flagstar transaction closed in the fourth quarter of 2024 for total considerations of approximately $1.3 billion in cash, funded through available cash and drawdowns of existing MSR lines. The acquired assets primarily consist of approximately $1.2 billion of MSRs and related advances, and $101 of client relationship intangibles associated with subservicing contracts. The Company accounted for the transaction as an asset acquisition in accordance with Accounting Standard Codification Topic 805, *Business Combinations ("ASC 805")*, whereby the purchase price was allocated to net assets based on their relative fair values.

 **3. Mortgage Servicing Rights and Related Liabilities** 

The following table sets forth the carrying value of the Company's MSR and the related liabilities. In estimating the fair value of all MSRs and related liabilities, the impact of the current environment was considered in the determination of key assumptions.

---

| | | |
|:---|:---|:---|
| **MSRs and Related Liabilities** | **June 30, 2025** | **December 31, 2024** |
| MSRs at fair value | $**11431** | $11736 |
| Excess spread financing at fair value | $**357** | $386 |
| Mortgage servicing rights financing at fair value | **24** | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;MSR related liabilities - nonrecourse at fair value | $**381** | $418 |

---

***Mortgage Servicing Rights***

The following table sets forth the activities of MSRs:

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **MSRs - Fair Value** | **2025** | **2024** |
| Balance - beginning of period | $**11736** | $9090 |
| Additions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Servicing retained from mortgage loans sold | **365** | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases and acquisitions of servicing rights | **289** | 1403 |
| Dispositions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales of servicing assets and excess yield | **(250)** | (237) |
| Changes in fair value: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) | **(210)** | 344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in valuation due to amortization | **(518)** | (405) |
| Other changes<sup>(1)</sup> | **19** | 20 |
| Balance - end of period | $**11431** | $10352 |

---

<sup>(1)</sup> Amounts primarily represent negative fair values reclassified from the MSR asset to reserves as underlying loans are removed from the MSR and other reclassification adjustments.

During the six months ended June 30, 2025 and 2024, the Company sold $8,583 and $3,305 in unpaid principal balance ("UPB") of MSRs, of which $8,091 and $3,029 were retained by the Company as subservicer, respectively.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

During the six months ended June 30, 2025 and 2024, certain agencies entered into agreements with the Company to purchase excess servicing cash flows ("excess yield") on certain agency loans with a total UPB of approximately $20,562 and $27,841 for proceeds of $138 and $226, respectively. During the six months ended June 30, 2025 and 2024, the Company recorded a loss of $10 and a gain of $27, respectively, through the mark-to-market adjustments within "revenues - service related, net" in the condensed consolidated statements of operations.

MSRs are segregated between investor type into agency and non-agency pools (referred to herein as "investor pools") based upon contractual servicing agreements with investors at the respective balance sheet date to evaluate the MSR portfolio and fair value of the portfolio. Agency investors consist of Government National Mortgage Association ("Ginnie Mae" or "GNMA") and the GSEs, Federal National Mortgage Association ("Fannie Mae" or "FNMA") and Federal Home Loan Mortgage Corp ("Freddie Mac" or "FHLMC"). Non-agency investors consist of investors in private-label securitizations.

The following table provides a breakdown of UPB and fair value for the Company's MSRs:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **MSRs - UPB and Fair Value Breakdown by Investor Pools** | **UPB** | **Fair Value** | **UPB** | **Fair Value** |
| Agency | $**701793** | $**11101** | $710997 | $11397 |
| Non-agency | **28715** | **330** | 25074 | 339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**730508** | $**11431** | $736071 | $11736 |

---

Refer to *Note 13, Fair Value Measurements*, for further discussion on key weighted-average inputs and assumptions used in estimating the fair value of MSRs.

The following table shows the hypothetical effect on the fair value of the Company's MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Option Adjusted Spread** | **Option Adjusted Spread** | **Total Prepayment Speeds** | **Total Prepayment Speeds** | **Cost to Service per Loan** | **Cost to Service per Loan** |
| **MSRs - Hypothetical Sensitivities** | **100 bps**<br>**Adverse**<br>**Change** | **200 bps**<br>**Adverse**<br>**Change** | **10%**<br>**Adverse**<br>**Change** | **20%**<br>**Adverse**<br>**Change** | **10%**<br>**Adverse**<br>**Change** | **20%**<br>**Adverse**<br>**Change** |
| **June 30, 2025** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage servicing rights | $**(456)** | $**(876)** | $**(321)** | $**(620)** | $**(78)** | $**(157)** |
| **December 31, 2024** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage servicing rights | $(470) | $(904) | $(308) | $(597) | $(84) | $(169) |

---

These hypothetical sensitivities should be evaluated with care. The effect on fair value of an adverse change in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects.

***Excess Spread Financing - Fair Value***

The Company had excess spread financing liability of $357 and $386, related to the UPB of $63,113 and $66,519 as of June 30, 2025 and December 31, 2024, respectively. Refer to *Note 13, Fair Value Measurements*, for key weighted-average inputs and assumptions used in the valuation of excess spread financing liability.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The following table shows the hypothetical effect on the Company's excess spread financing fair value when applying certain unfavorable variations of key assumptions to these liabilities for the dates indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Option Adjusted Spread** | **Option Adjusted Spread** | **Prepayment Speeds** | **Prepayment Speeds** |
| **Excess Spread Financing - Hypothetical Sensitivities** | **100 bps**<br>**Adverse**<br>**Change** | **200 bps**<br>**Adverse**<br>**Change** | **10%**<br>**Adverse**<br>**Change** | **20%**<br>**Adverse**<br>**Change** |
| **June 30, 2025** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess spread financing | $**12** | $**25** | $**8** | $**17** |
| **December 31, 2024** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess spread financing | $13 | $28 | $8 | $17 |

---

These hypothetical sensitivities should be evaluated with care. The effect on fair value of an adverse change in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Also, a positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing. Excess spread financing's cash flow assumptions that are utilized in determining fair value are based on the related cash flow assumptions used in the financed MSRs. Any fair value change recognized in the financed MSRs attributable to related cash flows assumptions would inherently have an inverse impact on the carrying amount of the related excess spread financing.

***Mortgage Servicing Rights Financing - Fair Value***

The Company had MSR financing liability of $24 and $32 as of June 30, 2025 and December 31, 2024. Refer to *Note 13, Fair Value Measurements*, for key weighted-average inputs and assumptions used in the valuation of the MSR financing liability.

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***Revenues - Service related, net***

The following table sets forth the items comprising total "revenues - service related, net":

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **Revenues - Service Related, Net** | **2025** | **2024** | **2025** | **2024** |
| Contractually specified servicing fees<sup>(1)</sup> | $**610** | $547 | **1231** | 1061 |
| Other service-related income<sup>(1)</sup> | **19** | 16 | **54** | 38 |
| Incentive and modification income<sup>(1)</sup>  | **22** | 16 | **47** | 34 |
| Servicing late fees<sup>(1)</sup>  | **38** | 31 | **76** | 61 |
| **Mark-to-market adjustments - Servicing** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MSR MTM | **64** | 155 | **(210)** | 344 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Loss) gain on MSR hedging activities | **(29)** | (103) | **180** | (225) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on MSR and excess yield sales | **3** | 23 | **(12)** | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassifications to reserve provision<sup>(2)</sup> | **(10)** | (6) | **(16)** | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess spread / MSR financing MTM | **3** |  | **8** | (6) |
| Total mark-to-market adjustments - Servicing | **31** | 69 | **(50)** | 112 |
| **Amortization, net of accretion** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MSR amortization | **(287)** | (226) | **(518)** | (405) |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess spread accretion | **9** | 9 | **17** | 18 |
| Total amortization, net of accretion | **(278)** | (217) | **(501)** | (387) |
| Originations service related fees<sup>(3)</sup> | **30** | 19 | **56** | 35 |
| Corporate/Xome service related fees | **16** | 20 | **33** | 42 |
| Other<sup>(4)</sup> | **(16)** | (16) | **(34)** | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues - service related, net | $**472** | $485 | $**912** | $**963** |

---

<sup>(1)</sup> Amounts include subservicing related revenues. Amounts also include servicing fees from loans sold with servicing retained of $208 and $189 for the three months ended June 30, 2025 and 2024, respectively, and $411 and $374 for the six months ended June 30, 2025 and 2024, respectively.

<sup>(2)</sup> Reclassifications to reserve provision include the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio.

<sup>(3)</sup> Amounts include fees collected from customers for originated loans and from other lenders for loans purchased through the correspondent channel, and include loan application, underwriting, and other similar fees.

<sup>(4)</sup> Other represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements, portfolio runoff and the payments made associated with MSR financing arrangements.

**4. Advances and Other Receivables** 

Advances and other receivables, net, consists of the following:

---

| | | |
|:---|:---|:---|
| **Advances and Other Receivables, Net** | **June 30, 2025** | **December 31, 2024** |
| Servicing advances, net of $5 and $6 purchase discount, respectively | $**1202** | $1410 |
| Receivables from agencies, investors and prior servicers | **38** | 47 |
| Reserves | **(116)** | (112) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total advances and other receivables, net | $**1124** | $1345 |

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The following table sets forth the activities of the servicing reserves for advances and other receivables:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **Reserves for Advances and Other Receivables** | **2025** | **2024** | **2025** | **2024** |
| Balance - beginning of period | $**117** | $144 | $**112** | $170 |
| Provision<sup>(1)</sup> | **22** | (4) | **36** | 11 |
| Reclassifications<sup>(2)</sup> | **(4)** | 8 | **(5)** | 17 |
| Write-offs<sup>(3)</sup> | **(19)** | 1 | **(27)** | (49) |
| Balance - end of period | $**116** | $149 | $**116** | $149 |

---

<sup>(1)</sup> The Company recorded a provision of $10 and $6 through the MTM adjustments in "revenues - service related, net" in the condensed consolidated statements of operations during the three months ended June 30, 2025 and 2024, respectively and a provision of $16 and $12 during the six months ended June 30, 2025 and 2024, respectively.

<sup>(2)</sup> Reclassifications represent required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.

<sup>(3)</sup> Write-offs represent balances removed from the servicing platform during the respective periods, including fully reserved balances related to third-party settlements where further loss recovery of prior servicer errors is limited.

***Purchase Discount for Advances and Other Receivables***

Purchase discounts for servicing advances was $5 and $12 as of June 30, 2025 and 2024, respectively. There was immaterial utilization of purchase discounts during the three and six months ended June 30, 2025 and 2024.

***Credit Loss for Advances and Other Receivables***

The following table sets forth the activities of the CECL allowance for advances and other receivables:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **CECL Allowance for Advances and Other Receivables** | **2025** | **2024** | **2025** | **2024** |
| Balance - beginning of period | $**12** | $17 | $**13** | $35 |
| Provision | **—** | 2 | **(1)** | 3 |
| Write-offs<sup>(1)</sup> | **(1)** |  | **(1)** | (19) |
| Balance - end of period<sup>(2)</sup> | $**11** | $19 | $**11** | $19 |

---

<sup>(1)</sup> Write-offs represent balances removed from the servicing platform during the respective periods, including fully reserved balances related to third-party settlements where further loss recovery of prior servicer errors is limited.

<sup>(2)</sup> Amounts were included in reserves.

The Company determined that the credit-related risk associated with applicable financial instruments typically increases with the passage of time. The CECL reserve methodology considers these financial instruments collectible to a point in time of 39 months. Any projected remaining balance at the end of the collection period is considered a loss and factors into the overall CECL loss rate required.

**5. Mortgage Loans Held for Sale** 

Mortgage loans held for sale are recorded at fair value as set forth below:

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| | | |
|:---|:---|:---|
| **Mortgage Loans Held for Sale** | **June 30, 2025** | **December 31, 2024** |
| Mortgage loans held for sale – UPB | $**2419** | $2187 |
| Mark-to-market adjustment<sup>(1)</sup> | **56** | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total mortgage loans held for sale | $**2475** | $2211 |

---

<sup>(1)</sup> The mark-to-market adjustment includes net change in unrealized gain/loss, premium on correspondent loans and certain fees on direct-to-consumer loans. The mark-to-market adjustment is recorded in "revenues - net gain on mortgage loans held for sale" in the condensed consolidated statements of operations.

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The following table sets forth the activities of mortgage loans held for sale:

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| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **Mortgage Loans Held for Sale** | **2025** | **2024** |
| Balance - beginning of period | $**2211** | $927 |
| Loans sold (at carrying value) and loan payments received | **(18565)** | (6923) |
| Mortgage loans originated and purchased, net of fees | **17844** | 6786 |
| Repurchase of loans out of Ginnie Mae securitizations<sup>(1)</sup> | **947** | 744 |
| Net change in unrealized gain on retained loans held for sale | **40** | 6 |
| Net transfers of mortgage loans held for sale<sup>(2)</sup> | **(2)** | (1) |
| Balance - end of period | $**2475** | $1539 |

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<sup>(1)</sup> The Company has the optional right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased in connection with loan modifications and loan resolution activity, with the intent to re-pool into new Ginnie Mae securitizations upon re-performance of the loan or to otherwise sell to third-party investors. Therefore, these loans are classified as held for sale.

<sup>(2)</sup> Amounts reflect transfers to other assets for loans transitioning into REO status and transfers to advances and other receivables, net, for claims made on certain government insurance mortgage loans. Transfers out are net of transfers in upon receipt of proceeds from an REO sale or claim filing.

For the six months ended June 30, 2025 and 2024, the Company recorded a total realized loss of $9 and a gain of $22 from total sales proceeds of $18,591 and $4,692, respectively, on the sale of mortgage loans held for sale.

The total UPB and fair value of mortgage loans held for sale on non-accrual status was as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Mortgage Loans Held for Sale** | **UPB** | **Fair Value** | **UPB** | **Fair Value** |
| Non-accrual<sup>(1)</sup> | $**49** | $**41** | $47 | $38 |

---

<sup>(1)</sup> Non-accrual UPB includes $44 and $38 of UPB related to Ginnie Mae repurchased loans as of June 30, 2025 and December 31, 2024, respectively.

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $20 and $22 as of June 30, 2025 and December 31, 2024, respectively.

**6. Loans Subject to Repurchase from Ginnie Mae** 

Loans are sold to Ginnie Mae in conjunction with the issuance of mortgage-backed securities. The Company, as the issuer of the mortgage-backed securities, has the unilateral right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including payments not being received from customers for greater than 90 days. Once the Company has the unilateral right to repurchase a delinquent loan, it has effectively regained control over the loan and recognizes these rights to the loan on its condensed consolidated balance sheets and establishes a corresponding repurchase liability regardless of the Company's intention to repurchase the loan. The Company had loans subject to repurchase from Ginnie Mae of $1,110 and $1,176 as of June 30, 2025 and December 31, 2024, respectively, which are included in both "other assets" and "payables and other liabilities" in the condensed consolidated balance sheets.

**7. Goodwill and Intangible Assets** 

The Company had goodwill of $141 as of June 30, 2025 and December 31, 2024, and intangible assets of $101 and $119 as of June 30, 2025 and December 31, 2024, respectively. Goodwill and intangible assets are included in "other assets" within the condensed consolidated balance sheets.

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**8. Derivative Financial Instruments** 

Derivative instruments are used as part of the overall strategy to manage exposure to interest rate risks related to mortgage loans held for sale and IRLCs ("the pipeline") and the MSR portfolio. The Company economically hedges the pipeline separately from the MSR portfolio primarily using third-party derivative instruments. Such derivative instruments utilized by the Company include IRLCs, loan purchase commitments ("LPCs"), forward MBS and Treasury futures. The changes in value on the derivative instruments associated with pipeline hedging are recorded in earnings as a component of "revenues - net gain on mortgage loans held for sale" on the condensed consolidated statements of operations and condensed consolidated statements of cash flows, while changes in the value of derivative instruments associated with the MSR portfolio fair value are recorded in "revenues - service related, net" on the condensed consolidated statements of operations and in "loss (gain) on MSR hedging activities" on the condensed consolidated statements of cash flows.

The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments. Gains/(losses) include both realized and unrealized gains/(losses) of each derivative financial instrument.

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **June 30, 2025** | **June 30, 2025** | **Six Months Ended June 30, 2025** |
| **Derivative Financial Instruments** |<br>**Expiration<br>Dates** | **Outstanding<br>Notional** | **Fair<br>Value** | **Gain/(Loss)** |
| **Assets** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held for sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan sale commitments | **2025** | $**845** | $**14** | $**2** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward MBS trades | **2025** | $**8369** | $**118** | $**232** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury futures | **2025** | **4272** | **79** | **79** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IRLCs | **2025** | **1106** | **41** | **19** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPCs | **2025** | **1597** | **12** | **7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative financial instruments - assets |  | $**15344** | $**250** | $**337** |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward MBS trades | **2025** | $**4226** | $**34** | $**(186)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPCs | **2025** | **187** | **1** | **6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IRLCs | **2025** | **3** | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative financial instruments - liabilities |  | $**4416** | $**35** | $**(180)** |

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **June 30, 2024** | **June 30, 2024** | **Six Months Ended June 30, 2024** |
| **Derivative Financial Instruments** |<br>**Expiration<br>Dates** | **Outstanding<br>Notional** | **Fair<br>Value** | **Gain/(Loss)** |
| **Assets** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held for sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan sale commitments | 2024 | $652 | $22 | $11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury futures | 2024 | $3432 | $62 | $(50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward MBS trades | 2024 | 1789 | 7 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IRLCs | 2024 | 1029 | 31 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPCs | 2024 | 324 | 2 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative financial instruments - assets |  | $6574 | $102 | $(26) |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward MBS trades | 2024 | $4797 | $8 | $(87) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPCs | 2024 | 480 | 2 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury future | 2024 | 470 | 3 | (96) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IRLCs | 2024 | 25 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative financial instruments - liabilities |  | $5772 | $13 | $(184) |

---

As of June 30, 2025, the Company held $63 in collateral deposits and $67 in collateral obligations on derivative instruments. As of December 31, 2024, the Company held $216 in collateral deposits and $3 in collateral obligations on derivative instruments. Collateral deposits and collateral obligations are recorded in "other assets" and "payables and other liabilities," respectively, in the condensed consolidated balance sheets. The Company does not offset fair value amounts recognized for derivative instruments with amounts collected or deposited on derivative instruments in the condensed consolidated balance sheets.

------

 **9. Indebtedness** 

***Advance, Warehouse and MSR Facilities***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| |<br>**Maturity Date** |<br>**Collateral** |<br>**Capacity Amount** | **Outstanding** | **Collateral Pledged** | **Outstanding** | **Collateral Pledged** |
| **Advance Facilities** | | | | | | | |
| $500 advance facility<sup>(1)</sup> | Jul 2026 | Servicing advance receivables | $**500** | $**241** | $**347** | $285 | $394 |
| $500 advance facility | Aug 2026 | Servicing advance receivables | **500** | **264** | **297** | 423 | 475 |
| $350 advance facility | Oct 2026 | Servicing advance receivables | **350** | **102** | **129** | 119 | 151 |
| $50 advance facility<sup>(2)</sup> | Jul 2026 | Servicing advance receivables | **50** | **20** | **25** | 22 | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advance facilities principal amount | &nbsp;&nbsp;&nbsp;&nbsp;Advance facilities principal amount |  |  | **627** | **798** | 849 | 1060 |
| **Warehouse Facilities** |  |  |  |  |  |  |  |
| $1,500 warehouse facility | Jun 2026 | Mortgage loans or MBS | **1500** | **—** | **—** | 68 | 71 |
| $1,200 warehouse facility<sup>(3)</sup> | Sep 2026 | Mortgage loans or MBS | **1200** | **122** | **141** | 131 | 148 |
| $1,000 warehouse facility | Oct 2025 | Mortgage loans or MBS | **1000** | **581** | **622** | 489 | 530 |
| $750 warehouse facility | Mar 2027 | Mortgage loans or MBS | **750** | **507** | **546** | 112 | 140 |
| $600 warehouse facility | Aug 2025 | Mortgage loans or MBS | **600** | **314** | **322** | 368 | 381 |
| $500 warehouse facility | Nov 2025 | Mortgage loans or MBS | **500** | **390** | **404** | 247 | 256 |
| $500 warehouse facility | Jun 2026 | Mortgage loans or MBS | **500** | **45** | **48** | 90 | 99 |
| $300 warehouse facility | Jun 2026 | Mortgage loans or MBS | **300** | **—** | **—** |  |  |
| $250 warehouse facility<sup>(4)</sup> | Jul 2026 | Mortgage loans or MBS | **250** | **164** | **177** | 238 | 253 |
| $200 warehouse facility | Dec 2026 | Mortgage loans or MBS | **200** | **13** | **15** | 112 | 123 |
| $200 warehouse facility<sup>(5)</sup> | Apr 2025 | Mortgage loans or MBS | **—** | **—** | **—** |  |  |
| $200 warehouse facility <sup>(2)</sup> | Jul 2026 | Mortgage loans or MBS | **200** | **97** | **98** | 105 | 105 |
| $100 warehouse facility | Apr 2026 | Mortgage loans or MBS | **100** | **—** | **—** |  |  |
| $100 warehouse facility | Apr 2026 | Mortgage loans or MBS | **100** | **54** | **61** | 56 | 62 |
| $1 warehouse facility | Dec 2025 | Mortgage loans or MBS | **1** | **—** | **—** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warehouse facilities principal amount | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warehouse facilities principal amount | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warehouse facilities principal amount | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warehouse facilities principal amount | **2287** | **2434** | 2016 | 2168 |
| **MSR Facilities** |  |  |  |  |  |  |  |
| $1,750 warehouse facility | Apr 2027 | MSR | **1750** | **900** | **2419** | 950 | 2669 |
| $1,500 warehouse facility<sup>(1)</sup> | Jul 2026 | MSR | **1500** | **475** | **2594** | 475 | 2607 |
| $950 warehouse facility<sup>(3)</sup> | Sep 2026 | MSR | **950** | **330** | **1478** | 550 | 1711 |
| $950 warehouse facility | Jul 2026 | MSR | **950** | **350** | **1003** | 670 | 1066 |
| $500 warehouse facility | Jun 2027 | MSR | **500** | **250** | **485** | 250 | 519 |
| $500 warehouse facility | Apr 2027 | MSR | **500** | **350** | **732** | 250 | 781 |
| $500 warehouse facility | Jun 2027 | MSR | **500** | **150** | **787** | 150 | 726 |
| $500 warehouse facility | Jul 2026 | MSR | **500** | **280** | **610** | 330 | 629 |
| $300 warehouse facility | Jun 2027 | MSR | **300** | **150** | **360** |  |  |
| $50 warehouse facility | Nov 2025 | MSR | **50** | **25** | **77** | 25 | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR facilities principal amount | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR facilities principal amount | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR facilities principal amount | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR facilities principal amount | **3260** | **10545** | 3650 | 10788 |
| Advance, warehouse and MSR facilities principal amount | Advance, warehouse and MSR facilities principal amount | Advance, warehouse and MSR facilities principal amount | Advance, warehouse and MSR facilities principal amount | **6174** | $**13777** | 6515 | $14016 |
| Unamortized debt issuance costs | Unamortized debt issuance costs | Unamortized debt issuance costs | Unamortized debt issuance costs | **(13)** |  | (20) |  |
| Advance, warehouse and MSR facilities, net | Advance, warehouse and MSR facilities, net | Advance, warehouse and MSR facilities, net | Advance, warehouse and MSR facilities, net | $**6161** |  | $6495 |  |

---

<sup>(1)</sup> Total capacity for this facility is $2,000, of which $500 is internally allocated for advance financing and $1,500 is internally allocated for MSR financing; capacity is fully fungible and is not restricted by these allocations.

<sup>(2)</sup> Total capacity for this facility is $200, of which $50 is a sublimit for advance financing. The sublimit for advance financing decreased to $30 in July 2025.

<sup>(3)</sup> The capacity for this facility is $1,200, of which $950 is a sublimit for MSR financing.

<sup>(4)</sup> The capacity for this facility increased from $250 to $500 in July 2025.

<sup>(5)</sup> This facility was terminated in April 2025.

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The weighted average interest rate for advance facilities was 6.8% and 7.7% for the three months ended June 30, 2025 and 2024, respectively, and 6.8% and 7.7% for the six months ended June 30, 2025 and 2024, respectively. The weighted average interest rate for warehouse and MSR facilities was 6.5% and 7.8% for the three months ended June 30, 2025 and 2024, respectively, and 6.5% and 7.9% for the six months ended June 30, 2025 and 2024, respectively.

***Unsecured Senior Notes***

Unsecured senior notes consist of the following:

---

| | | |
|:---|:---|:---|
| **Unsecured Senior Notes** | **June 30, 2025** | **December 31, 2024** |
| $1,000 face value, 7.125% interest rate payable semi-annually, due February 2032<sup>(1)</sup> | $**1000** | $1000 |
| $850 face value, 5.500% interest rate payable semi-annually, due August 2028 | **850** | 850 |
| $750 face value, 6.500% interest rate payable semi-annually, due August 2029<sup>(2)</sup> | **750** | 750 |
| $650 face value, 5.125% interest rate payable semi-annually, due December 2030 | **650** | 650 |
| $600 face value, 6.000% interest rate payable semi-annually, due January 2027 | **600** | 600 |
| $600 face value, 5.750% interest rate payable semi-annually, due November 2031 | **600** | 600 |
| $550 face value, 5.000% interest rate payable semi-annually, due February 2026 | **500** | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured senior notes principal amount | **4950** | 4950 |
| Purchase discount and unamortized debt issuance costs | **(48)** | (59) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured senior notes, net | $**4902** | $4891 |

---

<sup>(1)</sup> In February 2024, the Company completed the offering of $1,000 unsecured senior notes due 2032 (the "2032 Notes") and used the net proceeds from the offering to repay a portion of the amounts outstanding on its MSR facilities.

<sup>(2)</sup> In August 2024, the Company completed the offering of $750 unsecured senior notes due 2029 (the "2029 Notes") and used the net proceeds from the offering to repay a portion of the amounts outstanding on its MSR facilities.

The ratios included in the indentures for the unsecured senior notes are incurrence-based compared to the customary ratio covenants that are often found in credit agreements that require a company to maintain a certain ratio. The incurrence-based covenants limit the issuer(s) and restricted subsidiaries ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the applicable indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees.

The indentures provide that on or before certain fixed dates, the Company may redeem up to 40% of the aggregate principal amount of the unsecured senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest, to the redemption dates, subject to compliance with certain conditions. In addition, the Company may redeem all or a portion of the unsecured senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest, to the redemption dates. No notes were repurchased or redeemed during the six months ended June 30, 2025 and 2024.

As of June 30, 2025, the expected maturities of the Company's unsecured senior notes based on contractual maturities are as follows:

---

| | |
|:---|:---|
| **Year Ending December 31,** | **Amount** |
| 2025 | $**—** |
| 2026 | **500** |
| 2027 | **600** |
| 2028 | **850** |
| 2029 | **750** |
| Thereafter | **2250** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total unsecured senior notes principal amount | $**4950** |

---

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

***Financial Covenants***

The Company's credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements, which are measured at Nationstar Mortgage LLC, the Company's primary operating subsidiary, and Cypress Loan Servicing LLC. The Company was in compliance with its required financial covenants as of June 30, 2025.

**10. Securitizations and Financings** 

***Variable Interest Entities***

In the normal course of business, the Company enters into various types of on- and off-balance sheet transactions with special purpose entities ("SPEs") determined to be VIEs, which primarily consist of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which the Company transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets.

The Company has determined that the SPEs created in connection with certain advance facilities trusts should be consolidated as the Company is the primary beneficiary of each of these entities.

A summary of the assets and liabilities of the Company's transactions with VIEs included in the Company's condensed consolidated balance sheets is presented below:

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| **Consolidated Transactions with VIEs** | **Transfers<br>Accounted for as<br>Secured<br>Borrowings** | **Transfers<br>Accounted for as<br>Secured<br>Borrowings** |
| **Assets** | | |
| Restricted cash | $**137** | $188 |
| Advances and other receivables, net | **773** | 1020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**910** | $1208 |
| **Liabilities** |  |  |
| Advance facilities, net<sup>(1)</sup> | $**605** | $824 |
| Warehouse facilities, net<sup>(1)</sup> | **629** |  |
| MSR facilities, net<sup>(1)</sup> | **471** | 469 |
| Payables and other liabilities | **5** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $**1710** | $1296 |

---

<sup>(1)</sup> Refer to *Note 9, Indebtedness*, for additional information.

The following table shows a summary of the outstanding collateral and certificate balances for securitization trusts for which the Company was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by the Company:

---

| | | |
|:---|:---|:---|
| **Unconsolidated Securitization Trusts** | **June 30, 2025** | **December 31, 2024** |
| Total collateral balances - UPB | $**757** | $798 |
| Total certificate balances | $**732** | $773 |

---

The Company has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of June 30, 2025 and December 31, 2024. Therefore, it does not have a significant exposure to loss related to these unconsolidated VIEs.

A summary of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 60 days or more past due are presented below:

---

| | | |
|:---|:---|:---|
| **Principal Amount of Transferred Loans 60 Days or More Past Due** | **June 30, 2025** | **December 31, 2024** |
| Unconsolidated securitization trusts | $**72** | $81 |

---

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**11. Earnings Per Share** 

Basic earnings per share of common stock is computed by dividing net income by the weighted average number of common stock outstanding during the period. Diluted earnings per share of common stock is computed by dividing net income by the sum of the weighted average number of shares of common stock and any dilutive securities outstanding during the period. The Company's potentially dilutive securities are share-based awards. The Company applies the treasury stock method to determine the dilutive weighted average number of shares of common stock outstanding based on the outstanding share-based awards. As of June 30, 2025 and December 31, 2024, the Company had 10 million preferred shares authorized at par value of $0.00001 per share, with zero shares issued and outstanding and aggregate liquidation preference of zero dollars.

The following table sets forth the computation of basic and diluted net income per common share (amounts in millions, except per share amounts):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **Computation of Earnings Per Share** | **2025** | **2024** | **2025** | **2024** |
| Net income | $**198** | $204 | $**286** | $385 |
| Weighted average shares of common stock outstanding (in thousands): |  |  |  |  |
| Basic | **63987** | 64617 | **63851** | 64621 |
| Dilutive effect of stock awards | **1107** | 1151 | **1211** | 1401 |
| Diluted | **65094** | 65768 | **65062** | 66022 |
| Earnings per common share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $**3.09** | $3.16 | $**4.48** | $5.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $**3.04** | $3.10 | $**4.40** | $5.83 |

---

**12. Income Taxes** 

The effective tax rate for operations was 28.6% and 23.1% for the three and six months ended June 30, 2025, and 26.3% and 24.3% for the three and six months ended June 30, 2024, respectively. The effective tax rates differed from the statutory federal rate of 21% primarily due to state income taxes and nondeductible executive compensation.

The change in effective tax rate during the three and six months ended June 30, 2025, as compared to 2024, is primarily attributable to the impact of state legislative changes and quarterly discrete tax items for the respective period, including state income taxes.

**13. Fair Value Measurements** 

Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a three-tiered fair value hierarchy has been established based on the level of observable inputs used in the measurement of fair value (e.g., Level 1 representing quoted prices for identical assets or liabilities in an active market; Level 2 representing values using observable inputs other than quoted prices included within Level 1; and Level 3 representing estimated values based on significant unobservable inputs).

There have been no significant changes to the valuation techniques and inputs used by the Company in estimating fair values of Level 2 and Level 3 assets and liabilities as disclosed in the Company's Annual Reports on Form 10-K for the year ended December 31, 2024.

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The following tables present the estimated carrying amount and fair value of the Company's financial instruments and other assets and liabilities measured at fair value on a recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | | **Recurring Fair Value Measurements** | **Recurring Fair Value Measurements** | **Recurring Fair Value Measurements** |
| **Fair Value - Recurring Basis** |<br>**Total Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| **Assets** | | | | |
| Mortgage servicing rights | $**11431** | $**—** | $**—** | $**11431** |
| Mortgage loans held for sale | **2475** | **—** | **2411** | **64** |
| Equity investments | **5** | **—** |  | **5** |
| Derivative financial instruments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward MBS trades | **118** | **—** | **118** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury futures | **79** | **—** | **79** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IRLCs | **41** | **—** | **—** | **41** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPCs | **12** | **—** | **—** | **12** |
| **Liabilities** |  |  |  |  |
| Derivative financial instruments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward MBS trades | **34** | **—** | **34** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPCs | **1** | **—** | **—** | **1** |
| Excess spread financing | **357** | **—** | **—** | **357** |
| Mortgage servicing rights financing | **24** | **—** | **—** | **24** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | | **Recurring Fair Value Measurements** | **Recurring Fair Value Measurements** | **Recurring Fair Value Measurements** |
| **Fair Value - Recurring Basis** |<br>**Total Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| **Assets** | | | | |
| Mortgage servicing rights | $11736 | $— | $— | $11736 |
| Mortgage loans held for sale | 2211 |  | 2151 | 60 |
| Equity investments | 9 | 1 |  | 8 |
| Derivative financial instruments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IRLCs | 22 |  |  | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward MBS trades | 18 |  | 18 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPCs | 6 |  |  | 6 |
| **Liabilities** |  |  |  |  |
| Derivative financial instruments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward MBS trades | 95 |  | 95 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury futures | 59 |  | 59 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPCs | 7 |  |  | 7 |
| Excess spread financing | 386 |  |  | 386 |
| Mortgage servicing rights financing | 32 |  |  | 32 |

---

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The tables below set forth the activities for all of the Company's Level 3 assets and liabilities measured at fair value on a recurring basis:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Assets** | **Assets** | **Assets** | **Assets** | **Liabilities** | **Liabilities** |
| **Fair Value - Level 3 Assets and Liabilities** | **Mortgage servicing rights** | **Mortgage loans held for sale** | **IRLCs** | **LPCs** | **Excess spread financing** | **Mortgage servicing rights financing** |
| Balance - beginning of period | $**11736** | $**60** | $**22** | $**6** | $**386** | $**33** |
| Changes in fair value included in earnings | **(728)** | **2** | **19** | **6** | **1** | **(9)** |
| Purchases/additions<sup>(1)</sup> | **289** | **88** | **—** | **—** | **—** | **—** |
| Issuances | **365** | **—** | **—** | **—** | **—** | **—** |
| Sales/dispositions<sup>(2)</sup> | **(250)** | **(86)** | **—** | **—** | **—** | **—** |
| Repayments | **—** | **—** | **—** | **—** | **—** | **—** |
| Settlements | **—** | **—** | **—** | **—** | **(30)** | **—** |
| Other changes | **19** | **—** | **—** | **—** | **—** | **—** |
| Balance - end of period | $**11431** | $**64** | $**41** | $**12** | $**357** | $**24** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Assets** | **Assets** | **Assets** | **Assets** | **Liabilities** | **Liabilities** |
| **Fair Value - Level 3 Assets and Liabilities** | **Mortgage servicing rights** | **Mortgage loans held for sale** | **Equity investments** | **IRLCs** | **Excess spread financing** | **Mortgage servicing rights financing** |
| Balance - beginning of period | $9090 | $81 | $8 | $21 | $437 | $29 |
| Changes in fair value included in earnings | (61) | (1) |  | 10 | 2 | 4 |
| Purchases/additions<sup>(1)</sup> | 1403 | 66 |  |  |  |  |
| Issuances | 137 |  |  |  |  |  |
| Sales/dispositions<sup>(2)</sup> | (237) | (51) |  |  |  |  |
| Repayments |  | (2) |  |  |  |  |
| Settlements |  |  |  |  | (33) |  |
| Other changes | 20 | (3) |  |  |  |  |
| Balance - end of period | $10352 | $90 | $8 | $31 | $406 | $33 |

---

<sup>(1)</sup> Additions for mortgages loans held for sale include loans that are purchased or transferred in.

<sup>(2)</sup> Dispositions for mortgage loans held for sales include loans that are sold or transferred out.

The Company had immaterial equity investments and LPCs liabilities as of June 30, 2025 and immaterial LPCs assets and liabilities as of June 30, 2024. No transfers were made in or out of Level 3 fair value assets and liabilities for the Company during the six months ended June 30, 2025 and 2024.

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The table below presents the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Range** | **Range** | **Weighted Average** | **Range** | **Range** | **Weighted Average** |
| **Level 3 Inputs** | **Min** | **Max** | **Weighted Average** | **Min** | **Max** | **Weighted Average** |
| **MSRs**<sup>(1)</sup> | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Option adjusted spread<sup>(2)</sup> | **6.7%** | **12.1%** | **7.6%** | 6.9% | 12.2% | 7.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayment speed | **7.9%** | **9.9%** | **8.4%** | 6.8% | 9.3% | 7.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost to service per loan<sup>(3)</sup> | $**42** | $**111** | $**56** | $45 | $114 | $58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average life<sup>(4)</sup> |  |  | **7.4 years** |  |  | 7.8 years |
| **Mortgage loans held for sale** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market pricing | **45.0%** | **98.0%** | **83.4%** | 45.0% | 97.3% | 80.1% |
| **IRLCs** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value of servicing (reflected as a percentage of loan commitment) | **— %** | **3.7%** | **1.4%** | —% | 3.6% | 1.7% |
| **Excess spread financing**<sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Option adjusted spread<sup>(2)</sup> | **7.0%** | **12.3%** | **8.8%** | 6.9% | 12.3% | 8.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayment speed | **7.9%** | **8.1%** | **8.0%** | 7.2% | 7.6% | 7.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average life<sup>(4)</sup> |  |  | **6.5 years** |  |  | 6.8 years |
| **Mortgage servicing rights financing** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance financing and counterparty fee rates | **7.4%** | **8.5%** | **8.0%** | 7.2% | 9.0% | 8.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual advance recovery rates | **10.8%** | **14.9%** | **12.6%** | 14.9% | 16.8% | 16.0% |

---

<sup>(1)</sup> The inputs are weighted by investor.

<sup>(2)</sup> OAS represents incremental spread above a risk-free rate (one-month SOFR), which is an observable input.

<sup>(3)</sup> Presented in whole dollar amounts.

<sup>(4)</sup> Average life is included for informational purposes.

The tables below present a summary of the estimated carrying amount and fair value of the Company's financial instruments not carried at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Carrying<br>Amount** | **Fair Value** | **Fair Value** | **Fair Value** |
| **Financial Instruments** | **Carrying<br>Amount** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**783** | $**783** | $**—** | $**—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | **168** | **168** | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances and other receivables, net | **1124** | **—** | **—** | **1124** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans subject to repurchase from Ginnie Mae | **1110** | **—** | **1110** | **—** |
| **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured senior notes, net | **4902** | **—** | **5016** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance, warehouse and MSR facilities, net | **6161** | **—** | **6173** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liability for loans subject to repurchase from Ginnie Mae | **1110** | **—** | **1110** | **—** |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Carrying<br>Amount** | **Fair Value** | **Fair Value** | **Fair Value** |
| **Financial Instruments** | **Carrying<br>Amount** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $753 | $753 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 220 | 220 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances and other receivables, net | 1345 |  |  | 1345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans subject to repurchase from Ginnie Mae | 1176 |  | 1176 |  |
| **Financial liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured senior notes, net | 4891 |  | 4862 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance, warehouse and MSR facilities, net | 6495 |  | 6515 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liability for loans subject to repurchase from Ginnie Mae | 1176 |  | 1176 |  |

---

**14. Capital Requirements** 

Fannie Mae, Freddie Mac, Ginnie Mae and certain private label mortgage investors require the Company to maintain minimum net worth ("capital") requirements, as specified in the respective selling and servicing agreements. In addition, these investors may require capital ratios in excess of the stated requirements to approve large servicing transfers. To the extent that these requirements are not met, the Company's secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of the Company's selling and servicing agreements, which would prohibit the Company from further originating or securitizing these specific types of mortgage loans or being an approved servicer. The Company's various capital requirements related to its outstanding selling and servicing agreements are measured based on the Company's primary operating subsidiary, Nationstar Mortgage LLC, as well as Cypress Loan Servicing LLC. As of June 30, 2025, the Company was in compliance with its selling and servicing capital requirements.

**15. Commitments and Contingencies** 

***Litigation and Regulatory***

The Company and its subsidiaries are routinely and currently involved in a number of legal proceedings, including, but not limited to, judicial, arbitration, regulatory and governmental proceedings related to matters that arise in connection with the conduct of the Company's business. While it is not possible to predict the outcome of any of these matters, based on the Company's assessment of the facts and circumstances, it does not believe any of these matters, individually or in the aggregate, will have a material adverse effect on the financial position, results of operations or cash flows of the Company. However, actual outcomes may differ from those expected and could have a material effect on the Company's financial position, results of operations, or cash flows in a future period.

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On November 3, 2023, a putative class action lawsuit was filed against the Company, captioned Cabezas v. Mr. Cooper Group, Inc., No. 23-cv-02453 ("Cabezas"), in the United States District Court for the Northern District of Texas, by plaintiff Jennifer Cabezas purportedly on behalf of a class consisting of those persons impacted by the cybersecurity incident that occurred on October 31, 2023. The class action complaint alleged claims for negligence, negligence per se, breach of express contract, breach of implied contract, invasion of privacy, unjust enrichment, breach of confidence, and breach of fiduciary duty based upon allegations that the Company did not employ reasonable and adequate security measures to protect customer personal information accessed in the cybersecurity incident. The Cabezas complaint sought damages, declaratory and injunctive relief, and an award of costs, attorney fees and expenses, among other relief. Between November 2023 and February 7, 2024, 26 additional putative class actions were filed against the Company asserting substantially similar claims and allegations as those asserted in the Cabezas action. The Cabezas court consolidated all 26 pending cases with the Cabezas action, and the 26 separate matters were administratively closed. By Order dated June 25, 2024, the Cabezas court set July 15, 2024 as the last day for Plaintiffs to file a Consolidated Amended Complaint. On July 15, 2024, plaintiffs Jose Ignacio Garrigo, Izabela Debowcsyk, Joshua Watson, Brett Padalecki, Chris Leptiak, Denver Dale, Emily Burke, Mary Crawford, Kay Pollard, Jonathan Josi, Jeff Price, Mychael Marrone, Katy Ross, Lynette Williams, Karen Lynn Williams, Gary Allen, Larry Siegal, Rohit Burani, Elizabeth Curry, Justin Snider, Linda Hansen, and Deira Robertson (collectively, "Plaintiffs") filed a Consolidated Class Action Complaint on behalf of themselves and an alleged putative nationwide class of "All individuals residing in the United States whose PII was accessed and/or acquired as a result of the Data Breach announced by Mr. Cooper in or around November 2023," as well as 15 state subclasses. Plaintiffs assert seven of the same claims as in the original Cabezas complaint, (1) Breach of Express Contract; (2) Breach of Implied Contract; (3) Negligence; (4) Negligence Per Se; (5) Unjust Enrichment; (6) Invasion of Privacy; (7) Breach of Confidence; as well as a claim for Declaratory and Injunctive Relief, and 19 state law claims. The Consolidated Class Action Complaint seeks damages, injunctive relief, disgorgement and restitution, and an award of costs, attorney fees and expenses, among other relief. The Cabezas court set September 13, 2024 as the last day for Defendants to move to dismiss the Consolidated Class Action Complaint. On September 13, 2024, the Company filed a motion to dismiss the Consolidated Class Action Complaint. Plaintiffs opposed the motion and the Company filed a reply in further support of its motion on March 27, 2025.

The Company will continue to monitor legal matters for further developments that could affect the amount of the accrued liability that has been previously established. Legal-related expenses for the Company include legal settlements and the fees paid to external legal service providers and are included in general and administrative expenses on the condensed consolidated statements of operations. The Company recorded legal-related expenses, net of recoveries, which includes legal settlements and fees paid to external legal service providers, of $15 and $25 during the three and six months ended June 30, 2025 and $7 and $19 during the three and six months ended June 30, 2024, respectively, which are included in "expenses - general and administrative" on the condensed consolidated statements of operations. Management currently believes the aggregate range of reasonably possible loss is $7 to $15 in excess of the accrued liability (if any) related to those matters as of June 30, 2025. For some of these matters, the Company is able to estimate reasonably possible losses above existing reserves and for other matters, such an estimate is not possible at this time. This estimated range of possible loss is based upon currently available information and is subject to significant judgment, numerous assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary substantially from the current estimate.

***Other Loss Contingencies***

As part of the Company's ongoing operations, it acquires servicing rights of mortgage loan portfolios that are subject to indemnification based on the representations and warranties of the seller. From time to time, the Company will seek recovery under these representations and warranties for incurred costs. As of June 30, 2025, the Company believes all recorded balances for which recovery is sought from the seller are valid claims, and no evidence suggests additional reserves are warranted.

As a seller of mortgage loans to Agencies and other third parties, the Company may be required to indemnify or repurchase mortgage loans that fail to meet certain customary representations and warranties made in conjunction with sales of mortgage loans. The repurchase reserve liability related to such customary representations and warranties was $46 and $62 as of June 30, 2025 and December 31, 2024, respectively, which are included in "payables and other liabilities" within the condensed consolidated balance sheets.

***Loan and Other Commitments***

The Company enters into IRLCs with prospective customers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the customer. The Company also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value. See *Note 8, Derivative Financial Instruments*, for more information.

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 **16. Segment Information** 

The Company's segments reflect the internal reporting used to evaluate operating performance and are based upon the Company's organizational structure, which focuses primarily on the services offered. The Company's operations are primarily conducted through two segments: Servicing and Originations. A brief description of the current business segments is as follows:

*Servicing:* This segment performs operational activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing customer payments, investor reporting, customer service, modifying loans where appropriate to help customers stay current, and when necessary performing collections, foreclosures, and the sale of REO. In the fourth quarter of 2024, the Company expanded its servicing and subservicing portfolio with the acquisition and subsequent integration of the mortgage operations from the Flagstar transaction.

*Originations*: This segment originates residential mortgage loans through its direct-to-consumer channel, which provides refinance options for its existing customers, and through its correspondent channel, which purchases or originates loans from mortgage bankers.

*Corporate/Other*: Corporate/Other includes the results of Xome's and Roosevelt Management Company's operations, the Company's unallocated overhead expenses (which include the costs of executive management and other corporate functions that are not directly attributable to our operating segments), changes in equity investments and interest expense on our unsecured senior notes. In addition, Corporate/Other includes eliminations related to intersegment hedge fair value changes. Functional expenses are allocated to individual segments based on the actual cost of services performed, direct resource utilization, or headcount percentage for shared services. Facility costs are allocated to individual segments based on cost per headcount for specific facilities utilized. Group insurance costs are allocated to individual segments based on global cost per headcount. Non-allocated corporate expenses include the administrative costs of executive management and other corporate functions that are not directly attributable to the Company's operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. Eliminations are included in Corporate/Other.

The tables below summarize the result of operations and total assets by segment that are provided to the Chief Operating Decision Makers (CODMs), which consists of the Chief Executive Officer, the President and the Chief Financial Officer. Pretax income (loss) is a key measurement used by the CODMs to evaluate segment results and is one of the factors considered in determining capital allocation among the segments and determined in accordance with the measurement principles used in the consolidated financial statements.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| **Financial Information by Segment** | **Servicing** | **Originations** | **Corporate/Other** | **Consolidated** |
| Revenues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service related, net | $**426** | $**30** | $**16** | $**472** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on mortgage loans held for sale | **8** | **128** | **—** | **136** |
| Total revenues | **434** | **158** | **16** | **608** |
| Expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries, wages and benefits | **89** | **56** | **46** | **191** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | **59** | **44** | **36** | **139** |
| Total expenses | **148** | **100** | **82** | **330** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | **184** | **33** | **—** | **217** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **(106)** | **(30)** | **(81)** | **(217)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income (expenses), net | **—** | **3** | **(4)** | **(1)** |
| Total other income (expenses), net | **78** | **6** | **(85)** | **(1)** |
| Income (loss) before income tax expense (benefit) | $**364** | $**64** | $**(151)** | $**277** |
| Depreciation and amortization for property and equipment and intangible assets | $**7** | $**2** | $**2** | $**11** |
| Total assets | $**14412** | $**2481** | $**1606** | $**18499** |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| **Financial Information by Segment** | **Servicing** | **Originations** | **Corporate/Other** | **Consolidated** |
| Revenues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service related, net | $446 | $19 | $20 | $485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on mortgage loans held for sale | 10 | 88 |  | 98 |
| Total revenues | 456 | 107 | 20 | 583 |
| Expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries, wages and benefits | 84 | 40 | 44 | 168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 87 | 29 | 16 | 132 |
| Total expenses | 171 | 69 | 60 | 300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 174 | 15 |  | 189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (105) | (15) | (67) | (187) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense, net |  |  | (8) | (8) |
| Total other income (expenses), net | 69 |  | (75) | (6) |
| Income (loss) before income tax expense (benefit) | $354 | $38 | $(115) | $277 |
| Depreciation and amortization for property and equipment and intangible assets | $2 | $1 | $5 | $8 |
| Total assets | $12759 | $1398 | $1626 | $15783 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| **Financial Information by Segment** | **Servicing** | **Originations** | **Corporate/Other** | **Consolidated** |
| Revenues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service related, net | $**823** | $**56** | $**33** | $**912** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on mortgage loans held for sale | **14** | **242** | **—** | **256** |
| Total revenues | **837** | **298** | **33** | **1168** |
| Expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries, wages and benefits | **179** | **108** | **97** | **384** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | **209** | **87** | **80** | **376** |
| Total expenses | **388** | **195** | **177** | **760** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | **341** | **62** | **3** | **406** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **(212)** | **(56)** | **(162)** | **(430)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expenses, net | **—** | **—** | **(12)** | **(12)** |
| Total other income (expenses), net | **129** | **6** | **(171)** | **(36)** |
| Income (loss) before income tax expense (benefit) | $**578** | $**109** | $**(315)** | $**372** |
| Depreciation and amortization for property and equipment and intangible assets | $**21** | $**4** | $**4** | $**29** |
| Total assets | $**14412** | $**2481** | $**1606** | $**18499** |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| **Financial Information by Segment** | **Servicing** | **Originations** | **Corporate/Other** | **Consolidated** |
| Revenues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service related, net | $886 | $35 | $42 | $963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on mortgage loans held for sale | 20 | 164 |  | 184 |
| Total revenues | 906 | 199 | 42 | 1147 |
| Expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries, wages and benefits | 169 | 74 | 84 | 327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 187 | 57 | 46 | 290 |
| Total expenses | 356 | 131 | 130 | 617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 320 | 27 |  | 347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (203) | (25) | (129) | (357) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense, net |  |  | (11) | (11) |
| Total other income (expenses), net | 117 | 2 | (140) | (21) |
| Income (loss) before income tax expense (benefit) | $667 | $70 | $(228) | $509 |
| Depreciation and amortization for property and equipment and intangible assets | $5 | $2 | $9 | $16 |
| Total assets | $12759 | $1398 | $1626 | $15783 |

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**CAUTIONS REGARDING FORWARD-LOOKING STATEMENTS**

This report contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements include, without limitation, statements concerning plans, objectives, goals, projections, strategies, core initiatives, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts. When used in this discussion, the words "anticipate," "appears," "believe," "foresee," "intend," "should," "expect," "estimate," "project," "plan," "may," "could," "will," "are likely," and similar expressions are intended to identify forward-looking statements. These statements involve predictions of our future financial condition, performance, plans and strategies and are thus dependent on a number of factors including, without limitation, assumptions and data that may be imprecise or incorrect. Specific factors that may impact performance or other predictions of future actions have, in many but not all cases, been identified in connection with specific forward-looking statements. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances, and we are under no obligation to, and express disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

A number of important factors exist that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• macroeconomic and U.S. residential real estate market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in prevailing interest rates and/or changes in home prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain or grow the size of our servicing portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain or grow our originations volume and profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to recapture voluntary prepayments related to our existing servicing portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our shift in the mix of our servicing portfolio to subservicing, which is highly concentrated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to prevent cyber intrusions and mitigate cyber risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays in our ability to collect or be reimbursed for servicing advances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain sufficient liquidity and capital to operate our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruptions in the secondary home loans market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully implement our strategic initiatives and hedging strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to realize anticipated benefits of our previous acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to fully utilize our net operating loss, other tax carry forwards and certain built-in losses or deductions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our business relationships or changes in servicing guidelines with Fannie Mae, Freddie Mac and Ginnie Mae;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• third-party credit, servicer and correspondent risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to pay down or refinance debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to manage legal and regulatory examinations and enforcement investigations and proceedings, compliance requirements and related costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our reliance on vendor relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• issues related to the development and use of artificial intelligence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• health pandemics, hurricanes, earthquakes, fires, floods and other natural catastrophic events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain our licenses and other regulatory approvals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to complete the merger with Rocket Companies, Inc.

All of these factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for our management to predict all such factors or to assess the effect of each such new factor on our business. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and any of these statements included herein may prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements, or our objectives and plans will be achieved. Please refer to *Risk Factors* and *Management's Discussion and Analysis of Financial Condition and Results of Operations,* included in this report and in our Annual Report on Form 10-K for the year ended December 31, 2024 for further information on these and other risk factors affecting us.

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**Item 2. *Management's Discussion and Analysis of Financial Condition and Results of Operations***

Management's discussion and analysis of financial condition and results of operations ("MD&A") should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024. The following discussion contains, in addition to the historical information, forward-looking statements that include risks, assumptions and uncertainties that could cause actual results to differ materially from those anticipated by such statements.

Dollar amounts are reported in millions, except per share data and other key metrics, unless otherwise noted.

We have provided a glossary of terms, which defines certain industry-specific and other terms that are used herein, at the end of the MD&A section.

**Overview**

We are the country's largest residential mortgage servicer and a major originator of residential mortgage loans. Our mission is to keep the dream of homeownership alive, and we do this by helping our customers manage what is typically their largest financial asset, and by helping our investors and clients maximize the returns from their portfolios of residential mortgages. We have a track record of significant growth, having expanded our servicing portfolio UPB from $10 billion in 2006 to $1.5 trillion as of June 30, 2025. We believe this track record reflects our strong operating capabilities, strong loss mitigation skills, a commitment to compliance, a customer-centric culture, a demonstrated ability to retain customers, growing origination capabilities, and significant investment in technology.

Our strategy is to position the Company for sustained growth, deliver a world-class customer experience, increase our return on tangible equity into the high teens, and act as a trusted partner for our key stakeholders. Key strategic initiatives include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Strengthen our balance sheet by building capital and liquidity, and managing interest rate and other forms of risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Improve efficiency by driving continuous improvement in unit costs for Servicing and Originations segments, as well as by taking strategic corporate actions to eliminate costs throughout the organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Grow our servicing portfolio by acquiring new customers and retaining existing customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sustain industry leading refinance recapture rates and grow our purchase recapture rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Keep Mr. Cooper a great place for our team members to work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sustain the talent of our people and the culture of our organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delight our customers and reinvent the customer experience by acting as the customer's advocate and by harnessing technology to deliver digital solutions that are personalized and friction-free;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Use our mortgage-centric AI capabilities to transform mortgage servicing for the benefit of our customers, clients, team members, and investors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maintain strong relationships with agencies, investors, regulators, and other counterparties and a strong reputation for compliance and customer service.

**Anticipated Trends**

On March 31, 2025, Mr. Cooper Group Inc. and Rocket Companies, Inc. announced entry into a definitive agreement for Rocket to acquire all of the outstanding shares of Mr. Cooper in an all-stock transaction for $9.4 billion in equity value, based on an 11.0x exchange ratio. The transaction is expected to close in the fourth quarter of 2025, subject to approval of Mr. Cooper shareholders and the satisfaction of other closing conditions, including customary regulatory approvals.

For our Servicing segment, we expect our servicing portfolio to remain flat for the reminder of the year, as we work on integration planning with Rocket. For our Originations segment, we expect momentum in the direct-to-consumer channel, as home equity loans and cashout refinances volume continue to grow.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**Results of Operations**

**Table 1. Consolidated Operations**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | | **Six Months Ended June 30,** | **Six Months Ended June 30,** | |
| | **2025** | **2024** |<br>**Change** | **2025** | **2024** |<br>**Change** |
| Revenues - operational<sup>(1)</sup> | $**577** | $514 | $63 | $**1218** | $1035 | $183 |
| Revenues - mark-to-market | **31** | 69 | (38) | **(50)** | 112 | (162) |
| Total revenues | **608** | 583 | 25 | **1168** | 1147 | 21 |
| Total expenses | **330** | 300 | 30 | **760** | 617 | 143 |
| Total other expense, net | **(1)** | (6) | 5 | **(36)** | (21) | (15) |
| Income before income tax expense | **277** | 277 |  | **372** | 509 | (137) |
| Less: Income tax expense | **79** | 73 | 6 | **86** | 124 | (38) |
| Net income | $**198** | $204 | $(6) | $**286** | $385 | $(99) |

---

<sup>(1)</sup> Revenues - operational consists of total revenues, excluding mark-to-market.

Total revenues increased in the three and six months ended June 30, 2025 primarily due to increased operational revenues driven by a larger servicing portfolio and increased volume in originations. The increase in operational revenues was largely offset by a decrease in MSR MTM driven by mortgage rates movements.

Total expenses increased in the three months ended June 30, 2025 as compared to 2024, primarily due to an increase in salaries, wages and benefits expense driven by variable compensation attributable to higher originations funding volume. Total expenses also increased in the six months ended June 30, 2025 as compared to 2024, primarily resulted from an increase in general and administrative costs driven by higher originations volume, transaction costs related to the merger with Rocket, and transition costs associated with the Flagstar Transaction. In addition, higher amortization was recorded in 2025 for intangible assets acquired in the fourth quarter of 2024 in relation with the Flagstar transaction.

Total other expense, net remained consistent in the three months ended June 30, 2025, when compared with 2024. Total other expense, net increased in the six months ended June 30, 2025, as compared to 2024 primarily due to higher interest expense from warehouse facilities financing as well as the issuances of the 2032 Notes in February 2024 and the 2029 Notes in August 2024. Partially offsetting the increase in interest expense was an increase in interest income primarily due to higher float income on custodial deposits as a result of growth in the MSR portfolio.

The effective tax rate during the three months ended June 30, 2025, was 28.6% as compared to 26.3% in 2024, and the effective tax rate during the six months ended June 30, 2025 was 23.1% as compared to 24.3% in 2024. The change in effective tax rate is primarily attributable to the impact of state legislative changes and quarterly discrete tax items for the respective period, including state income taxes.

**Segment Results**

Our operations are primarily conducted through two segments: Servicing and Originations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Servicing segment performs operational activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing customer payments, investor reporting, customer service, modifying loans where appropriate to help customers stay current, and when necessary performing collections, foreclosures, and the sale of REO. In the fourth quarter of 2024, we expanded our servicing and subservicing portfolio with the acquisition and subsequent integration of the mortgage operations from the Flagstar transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Originations segment originates residential mortgage loans through our direct-to-consumer channel, which provides refinance options for our existing customers, and through our correspondent channel, which purchases or originates loans from mortgage bankers.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

Refer to *Note 16, Segment Information*, in the Notes to the Condensed Consolidated Financial Statements for a summary of segment results.

**Servicing Segment**

The Servicing segment's strategy is to generate income by growing the portfolio and maximizing the servicing margin. We believe several competitive strengths have been critical to our long-term growth as a servicer and subservicer, including our low-cost platform that creates operating leverage, our skill in mitigating losses for investors and clients, our commitment to strong customer service, industry leading compliance management, our history of successfully boarding new loans, and the ability to retain existing customers by offering attractive purchase and refinance options. We believe that our operational capabilities are reflected in our strong servicer ratings and recent agency recognition.

**Table 2. Servicer Ratings**<br>

---

| | | | |
|:---|:---|:---|:---|
| | **Fitch**<sup>(1)</sup> | **Moody's**<sup>(2)</sup> | **S&P**<sup>(3)</sup> |
| *Rating date* | *January & June 2025* | *October & December 2024* | *January 2024* |
| Residential | RPS2 | SQ2- | Above Average |
| Master Servicer | RMS1- | SQ2+ | Above Average |
| Special Servicer | RSS2 | SQ2- | Above Average |
| Closed-end 2nd Lien Servicer | RPS2 | N/A | N/A |
| Subprime Servicer | RPS2 | SQ2- | Above Average |
| Rushmore Special | RSS2 | SQ3+ | Above Average |

---

<sup>(1)</sup> Fitch Rating Scale of 1 (Highest Performance) to 5 (Low/No Proficiency)

<sup>(2)</sup> Moody's Rating Scale of SQ1 (Strong Ability/Stability) to SQ5 (Weak Ability/Stability)

<sup>(3)</sup> S&P Rating Scale of Strong to Weak

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The following tables set forth the results of operations for the Servicing segment:

**Table 3. Servicing Segment Results of Operations**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | | |
| | **2025** | **2025** | **2024** | **2024** | **Change** | **Change** |
| | **Amt** | **bps**<sup>(1)</sup> | **Amt** | **bps**<sup>(1)</sup> | **Amt** | **bps** |
| Revenues |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operational | $**681** | **18** | $604 | 21 | $77 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization, net of accretion | **(278)** | **(7)** | (217) | (7) | (61) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mark-to-market adjustments - Servicing | **31** | **1** | 69 | 2 | (38) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | **434** | **12** | 456 | 16 | (22) | (4) |
| Expenses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries, wages and benefits | **89** | **2** | 84 | 3 | 5 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Servicing support fees | **27** | **1** | 27 | 1 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other general and administrative expenses | **63** | **2** | 62 | 2 | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreclosure and other liquidation related recoveries, net | **(38)** | **(1)** | (4) |  | (34) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **7** | **—** | 2 |  | 5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total general and administrative expenses | **59** | **2** | 87 | 3 | (28) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | **148** | **4** | 171 | 6 | (23) | (2) |
| Other income (expense) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | **184** | **5** | 174 | 6 | 10 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance interest expense | **(13)** | **—** | (14) | (1) | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR and other interest expense | **(93)** | **(3)** | (91) | (3) | (2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | **(106)** | **(3)** | (105) | (4) | (1) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | **78** | **2** | 69 | 2 | 9 |  |
| Income before income tax expense | $**364** | **10** | $354 | 12 | $10 | (2) |
| Weighted average cost - advance and MSR facilities | **7.1%** |  | 8.0% |  | (0.9)% |  |
| Weighted average cost - excess spread financing | **8.7%** |  | 8.7% |  | —% |  |

---

<sup>(1)</sup> Calculated basis points ("bps") are as follows: Annualized dollar amount/Total average UPB X 10000. 

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**Table 3.1 Servicing - Revenues**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | | |
| | **2025** | **2025** | **2024** | **2024** | **Change** | **Change** |
| | **Amt** | **bps**<sup>(1)</sup> | **Amt** | **bps**<sup>(1)</sup> | **Amt** | **bps** |
| **MSR Operational Revenue** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base servicing fees | $**527** | **14** | $479 | 16 | $48 | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Modification fees | **8** | **—** | 5 |  | 3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Late payment fees | **26** | **1** | 21 | 1 | 5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other ancillary revenues | **19** | **—** | 20 | 1 | (1) | (1) |
| Total MSR operational revenue | **580** | **15** | 525 | 18 | 55 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subservicing-related revenue | **117** | **3** | 95 | 3 | 22 |  |
| Total servicing fee revenue | **697** | **18** | 620 | 21 | 77 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR financing liability costs | **(7)** | **—** | (7) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess spread payments and portfolio runoff | **(9)** | **—** | (9) |  |  |  |
| Total operational revenue | **681** | **18** | 604 | 21 | 77 | (3) |
| **Amortization, Net of Accretion** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR amortization | **(287)** | **(7)** | (226) | (7) | (61) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess spread accretion | **9** | **—** | 9 |  |  |  |
| Total amortization, net of accretion | **(278)** | **(7)** | (217) | (7) | (61) |  |
| **Mark-to-Market Adjustments - Servicing** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR MTM | **64** | **2** | 155 | 5 | (91) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on MSR hedging activities | **(29)** | **(1)** | (103) | (4) | 74 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on MSR sales | **3** | **—** | 23 | 1 | (20) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassifications to reserve provision<sup>(2)</sup> | **(10)** | **—** | (6) |  | (4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess spread / financing MTM | **3** | **—** |  |  | 3 |  |
| Total MTM - Servicing | **31** | **1** | 69 | 2 | (38) | (1) |
| Total revenues - Servicing | $**434** | **12** | $456 | 16 | $(22) | (4) |

---

<sup>(1)</sup> Calculated basis points ("bps") are as follows: Annualized dollar amount/Total average UPB X 10000. 

<sup>(2)</sup> Reclassifications to reserve provision include the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio.

**Servicing Segment Revenues**

The following provides the changes in revenues for the Servicing segment:

***Servicing*** - Operational revenue and MSR amortization increased during the three months ended June 30, 2025, as compared to 2024, primarily due to a larger average MSR UPB portfolio driven by servicing portfolio growth.

The decrease in MSR MTM during the three months ended June 30, 2025, as compared to 2024, was primarily due to lesser impact from the increase in mortgage rates in 2025 compared to 2024. The MSR MTM changes were partially offset by MSR hedging activities during the respective periods.

***Subservicing*** - Subservicing-related revenue increased during the three months ended June 30, 2025, as compared to 2024, primarily driven by a larger average subservicing portfolio due to the Flagstar transaction in the fourth quarter of 2024.

**Servicing Segment Expenses**

Total expenses decreased during the three months ended June 30, 2025, as compared to 2024, primarily due to due to higher recoveries in 2025.

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**Servicing Segment Other Income, net**

Total other income, net increased during the three months ended June 30, 2025, as compared to 2024, primarily attributable to increased float income on custodial deposits as a result of growth in the MSR portfolio, partially offset by higher interest expense from MSR financing.

**Table 4. Servicing Segment Results of Operations**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | | |
| | **2025** | **2025** | **2024** | **2024** | **Change** | **Change** |
| | **Amt** | **bps**<sup>(1)</sup> | **Amt** | **bps**<sup>(1)</sup> | **Amt** | **bps** |
| Revenues |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operational | $**1388** | **18** | $1181 | 21 | $207 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization, net of accretion | **(501)** | **(6)** | (387) | (7) | (114) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mark-to-market adjustments - Servicing | **(50)** | **(1)** | 112 | 2 | (162) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | **837** | **11** | 906 | 16 | (69) | (5) |
| Expenses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries, wages and benefits | **179** | **2** | 169 | 3 | 10 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Servicing support fees | **62** | **1** | 55 | 1 | 7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other general and administrative expenses | **127** | **2** | 124 | 2 | 3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreclosure and other liquidation related (recoveries) expenses, net | **(1)** | **—** | 3 |  | (4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **21** | **—** | 5 |  | 16 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total general and administrative expenses | **209** | **3** | 187 | 3 | 22 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | **388** | **5** | 356 | 6 | 32 | (1) |
| Other income (expense) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | **341** | **5** | 320 | 6 | 21 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance interest expense | **(28)** | **—** | (30) | (1) | 2 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR and other interest expense | **(184)** | **(3)** | (173) | (3) | (11) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | **(212)** | **(3)** | (203) | (4) | (9) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | **129** | **2** | 117 | 2 | 12 |  |
| Income before income tax expense | $**578** | **8** | $667 | 12 | $(89) | (4) |
| Weighted average cost - advance and MSR facilities | **7.1%** |  | 8.1% |  | (1.0)% |  |
| Weighted average cost - excess spread financing | **8.7%** |  | 8.7% |  | —% |  |

---

<sup>(1)</sup> Calculated basis points ("bps") are as follows: Annualized dollar amount/Total average UPB X 10000. 

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**Table 4.1 Servicing - Revenues**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | | |
| | **2025** | **2025** | **2024** | **2024** | **Change** | **Change** |
| | **Amt** | **bps**<sup>(1)</sup> | **Amt** | **bps**<sup>(1)</sup> | **Amt** | **bps** |
| **MSR Operational Revenue** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base servicing fees | $**1060** | **14** | $928 | 16 | $132 | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Modification fees | **18** | **—** | 12 |  | 6 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Late payment fees | **51** | **1** | 41 | 1 | 10 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other ancillary revenues | **48** | **—** | 40 | 1 | 8 | (1) |
| Total MSR operational revenue | **1177** | **15** | 1021 | 18 | 156 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subservicing-related revenue | **245** | **3** | 193 | 3 | 52 |  |
| Total servicing fee revenue | **1422** | **18** | 1214 | 21 | 208 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR financing liability costs | **(17)** | **—** | (15) |  | (2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess spread payments and portfolio runoff | **(17)** | **—** | (18) |  | 1 |  |
| Total operational revenue | **1388** | **18** | 1181 | 21 | 207 | (3) |
| **Amortization, Net of Accretion** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR amortization | **(518)** | **(6)** | (405) | (7) | (113) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess spread accretion | **17** | **—** | 18 |  | (1) |  |
| Total amortization, net of accretion | **(501)** | **(6)** | (387) | (7) | (114) | 1 |
| **Mark-to-Market Adjustments - Servicing** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MSR MTM | **(210)** | **(3)** | 344 | 6 | (554) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on MSR hedging activities | **180** | **2** | (225) | (4) | 405 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) gain on MSR sales | **(12)** | **—** | 11 |  | (23) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassifications to reserve provision<sup>(2)</sup> | **(16)** | **—** | (12) |  | (4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess spread / financing MTM | **8** | **—** | (6) |  | 14 |  |
| Total MTM - Servicing | **(50)** | **(1)** | 112 | 2 | (162) | (3) |
| Total revenues - Servicing | $**837** | **11** | $906 | 16 | $(69) | (5) |

---

<sup>(1)</sup> Calculated basis points ("bps") are as follows: Annualized dollar amount/Total average UPB X 10000. 

<sup>(2)</sup> Reclassifications to reserve provision include the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio.

**Servicing Segment Revenues**

The following provides the changes in revenues for the Servicing segment:

***Servicing*** - Operational revenue and MSR amortization increased during the six months ended June 30, 2025, as compared to 2024, primarily due to a larger average MSR UPB portfolio driven by servicing portfolio growth.

The change in MSR MTM during the six months ended June 30, 2025, as compared to 2024, was primarily due to a decrease in mortgage rates in 2025 compared to an increase in mortgage rates in 2024. The MSR MTM changes were partially offset by MSR hedging activities during the respective periods.

***Subservicing*** - Subservicing-related revenue increased during the six months ended June 30, 2025, as compared to 2024, primarily driven by a larger average subservicing portfolio due to the Flagstar transaction in the fourth quarter of 2024.

**Servicing Segment Expenses**

Total expenses increased during the six months ended June 30, 2025, as compared to 2024, primarily due to higher depreciation and amortization expense in 2025 related to amortization recorded for intangible assets acquired in the fourth quarter of 2024 in relation with the Flagstar transaction.

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**Servicing Segment Other Income, net**

Total other income, net increased during the six months ended June 30, 2025, as compared to 2024, primarily attributable to increased float income on custodial deposits as a result of growth in the MSR portfolio, partially offset by higher interest expense from MSR financing.

**Table 5. Servicing Portfolio - Unpaid Principal Balances**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | | | **2025** | **2024** | **2025** | **2024** |
| **Average UPB** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MSRs |  |  | $**733849** | $647080 | $**736268** | $627310 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subservicing and other<sup>(1)</sup> |  |  | **775964** | 523738 | **784042** | 491949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total average UPB |  |  | $**1509813** | $1170818 | $**1520310** | $1119259 |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  | **UPB** | **Carrying Amount** | **bps** | **UPB** | **Carrying Amount** | **bps** |
| **MSRs** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency | $**701793** | $**11101** | **158** | $650171 | $10023 | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-agency | **28715** | **330** | **115** | 25854 | 329 | 127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total MSRs | **730508** | **11431** | **156** | 676025 | 10352 | 153 |
| **Subservicing and other**<sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency | **707385** | **N/A** |  | 481818 | N/A |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-agency | **70749** | **N/A** |  | 48004 | N/A |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total subservicing and other | **778134** | **N/A** |  | 529822 | N/A |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total ending balance | $**1508642** | $**11431** |  | $1205847 | $10352 |  |
| **MSRs UPB Encumbrance** | **MSRs UPB Encumbrance** |  |  |  | **June 30, 2025** | **June 30, 2024** |
| MSRs - unencumbered | MSRs - unencumbered |  |  |  | $**667302** | $605448 |
| MSRs - encumbered<sup>(2)</sup> |  |  |  |  | **63206** | 70577 |
| &nbsp;&nbsp;&nbsp;&nbsp;MSRs UPB |  |  |  |  | $**730508** | $676025 |

---

<sup>(1)</sup> Subservicing and other includes (i) loans we service for others, (ii) residential mortgage loans originated but have yet to be sold, and (iii) agency REO balances for which we own the mortgage servicing rights.

<sup>(2)</sup> Encumbered MSRs consist of residential mortgage loans included within our excess spread financing transactions and MSR financing liability.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The following tables provide a rollforward of our MSR and subservicing and other portfolio UPB:

**Table 6. Servicing and Subservicing and Other Portfolio UPB Rollforward**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **MSR** | **Subservicing and Other** | **Total** | **MSR** | **Subservicing and Other** | **Total** |
| Balance - beginning of period | $**733752** | $**779924** | $**1513676** | $630733 | $505456 | $1136189 |
| Additions: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Originations | **9387** | **—** | **9387** | 3775 |  | 3775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions / Increase in subservicing<sup>(1)</sup> | **14719** | **34853** | **49572** | 56153 | 41848 | 98001 |
| Deductions: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dispositions / Decrease in subservicing<sup>(2)</sup> | **(7078)** | **(17226)** | **(24304)** | (161) | (6448) | (6609) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal reductions and other | **(7899)** | **(5983)** | **(13882)** | (6180) | (3511) | (9691) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voluntary reductions<sup>(3)</sup> | **(11995)** | **(13135)** | **(25130)** | (7956) | (7316) | (15272) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Involuntary reductions<sup>(4)</sup> | **(354)** | **(299)** | **(653)** | (317) | (207) | (524) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net changes in loans serviced by others | **(24)** | **—** | **(24)** | (22) |  | (22) |
| Balance - end of period | $**730508** | $**778134** | $**1508642** | $676025 | $529822 | $1205847 |

---

<sup>(1)</sup> Amount for Subservicing and Other UPB includes transfers from MSR for MSRs sold with subservicing rights retained.

<sup>(2)</sup> Amount for MSR UPB includes transfers to Subservicing and other for MSRs sold with subservicing rights retained.

<sup>(3)</sup> Voluntary reductions are related to loan payoffs by customers

<sup>(4)</sup> Involuntary reductions refer to loan defaults, loan liquidations and loan chargeoffs.

**6.1 Servicing and Subservicing and Other Portfolio UPB Rollforward**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **MSR** | **Subservicing and Other** | **Total** | **MSR** | **Subservicing and Other** | **Total** |
| Balance - beginning of period | $**736071** | $**819965** | $**1556036** | $587942 | $403778 | $991720 |
| Additions: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Originations | **17719** | **—** | **17719** | 6610 |  | 6610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions / Increase in subservicing<sup>(1)</sup> | **21759** | **43519** | **65278** | 110356 | 154260 | 264616 |
| Deductions: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dispositions / Decrease in subservicing<sup>(2)</sup> | **(8583)** | **(51497)** | **(60080)** | (3305) | (9375) | (12680) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal reductions and other | **(15308)** | **(11699)** | **(27007)** | (11592) | (6100) | (17692) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voluntary reductions<sup>(3)</sup> | **(20493)** | **(21587)** | **(42080)** | (13293) | (12354) | (25647) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Involuntary reductions<sup>(4)</sup> | **(685)** | **(567)** | **(1252)** | (647) | (387) | (1034) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net changes in loans serviced by others | **28** | **—** | **28** | (46) |  | (46) |
| Balance - end of period | $**730508** | $**778134** | $**1508642** | $676025 | $529822 | $1205847 |

---

<sup>(1)</sup> Amount for Subservicing and Other UPB includes transfers from MSR for MSRs sold with subservicing rights retained.

<sup>(2)</sup> Amount for MSR UPB includes transfers to Subservicing and other for MSRs sold with subservicing rights retained.

<sup>(3)</sup> Voluntary reductions are related to loan payoffs by customers.

<sup>(4)</sup> Involuntary reductions refer to loan defaults, loan liquidations and loan chargeoffs.

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The table below summarizes the overall performance of the servicing and subservicing portfolio:

**Table 7. Key Performance Metrics - Servicing and Subservicing Portfolio**<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **June 30, 2025** | **June 30, 2024** |
| Loan count |  |  | **6439394** | 5312627 |
| Average loan amount<sup>(1)</sup> |  |  | $**233820** | $226453 |
| Average coupon - agency |  |  | **4.4%** | 4.3% |
| Average coupon - non-agency |  |  | **5.0%** | 4.9% |
| 60+ delinquent (% of loans)<sup>(2)</sup> |  |  | **1.4%** | 1.4% |
| 90+ delinquent (% of loans)<sup>(2)</sup> |  |  | **1.1%** | 1.1% |
| 120+ delinquent (% of loans)<sup>(2)</sup> |  |  | **1.0%** | 1.0% |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Total prepayment speed (12-month constant prepayment rate) | **7.0%** | 5.6% | **6.0%** | 5.2% |

---

<sup>(1)</sup> Average loan amount is presented in whole dollar amounts.

<sup>(2)</sup> Loan delinquency is based on the current contractual due date of the loan. In the case of a completed loan modification, delinquency is based on the modified due date of the loan. Loan delinquency includes loans in forbearance.

Delinquency is an assumption in determining the mark-to-market adjustment and is a key indicator of MSR portfolio performance. Delinquent loans contribute to lower MSR values due to higher costs to service and increased carrying costs of advances.

**Table 8. Loan Modifications and Workout Units**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | | **Six Months Ended June 30,** | **Six Months Ended June 30,** | |
| | **2025** | **2024** |<br>**Change** | **2025** | **2024** |<br>**Change** |
| Modifications<sup>(1)</sup> | **13354** | 7733 | 5621 | **25957** | 14923 | 11034 |
| Workouts<sup>(2)</sup> | **18612** | 14912 | 3700 | **41259** | 32182 | 9077 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total modifications and workout units | **31966** | 22645 | 9321 | **67216** | 47105 | 20111 |

---

<sup>(1)</sup> Modifications consist of Agency/investor programs designed to adjust the terms of the loan (e.g., interest rates, maturity date).

<sup>(2)</sup> Workouts consist of other loss mitigation options designed to assist customers and keep them in their homes, but do not adjust the terms of the loan.

Modifications and workouts increased during the three and six months ended June 30, 2025, as compared to 2024, primarily due to growth in our servicing portfolio and the continued expansion of loss mitigation programs offered by FNMA, FHLMC, FHA, and VA which increased customer eligibility and resulted in an increase in successful modifications and workouts.

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**Servicing Portfolio and Liabilities**

The following table sets forth the activities of MSRs:

**Table 9. MSRs - Fair Value Rollforward**<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Fair value - beginning of period | $**11345** | $9796 | $**11736** | $9090 |
| Additions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Servicing retained from mortgage loans sold | **201** | 73 | **365** | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases and acquisitions of servicing rights | **183** | 740 | **289** | 1403 |
| Dispositions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales of servicing assets and excess yield | **(86)** | (195) | **(250)** | (237) |
| Changes in fair value: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to changes in valuation inputs or assumptions used in the valuation model (MSR MTM): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency | **108** | 154 | **(164)** | 325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency | **(44)** | 1 | **(46)** | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in valuation due to amortization: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Scheduled principal payments | **(139)** | (94) | **(225)** | (179) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voluntary prepayments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency | **(140)** | (124) | **(278)** | (210) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency | **(3)** | (3) | **(6)** | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Involuntary prepayments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency | **(5)** | (5) | **(9)** | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency | **—** |  | **—** |  |
| Other changes<sup>(1)</sup> | **11** | 9 | **19** | 20 |
| Fair value - end of period | $**11431** | $10352 | $**11431** | $10352 |

---

<sup>(1)</sup> Amounts primarily represent negative fair values reclassified from the MSR asset to reserves as the underlying loans are removed from the MSR and other reclassification adjustments.&nbsp;&nbsp;&nbsp;&nbsp;

See *Note 3, Mortgage Servicing Rights and Related Liabilities* and *Note 13, Fair Value Measurements*, in the Notes to the Condensed Consolidated Financial Statements, for additional information regarding the range of assumptions and sensitivities related to the fair value measurement of MSRs as of June 30, 2025 and December 31, 2024.

**Excess Spread Financing**

As further disclosed in *Note 3, Mortgage Servicing Rights and Related Liabilities*, in the Notes to the Condensed Consolidated Financial Statements, we have entered into sale and assignment agreements treated as financing arrangements whereby the acquirer has the right to receive a specified percentage of the excess cash flow generated from an MSR.

The servicing fees associated with an MSR can be segregated into (i) a base servicing fee and (ii) an excess servicing fee. The base servicing fee, along with ancillary income and other revenues, is designed to cover costs incurred to service the specified pool plus a reasonable margin. The remaining servicing fee is considered excess. We sell a percentage of the excess fee, as a method for efficiently financing acquired MSRs and the purchase of loans, however we have not done so in recent years due to the availability of lower cost sources of funding.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

Excess spread financings are recorded at fair value, and the impact of fair value adjustments on future revenues and capital resources varies primarily due to prepayment speeds and option-adjusted spread levels. See *Note 3, Mortgage Servicing Rights and Related Liabilities* and *Note 13, Fair Value Measurements*, in the Notes to the Condensed Consolidated Financial Statements, for additional information regarding the range of assumptions and sensitivities related to the measurement of the excess spread financing liability as of June 30, 2025 and December 31, 2024.

The following table sets forth the change in the excess spread financing:

**Table 10. Excess Spread Financing - Rollforward**<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Fair value - beginning of period | $**366** | $420 | $**386** | $437 |
| Deductions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlements | **(15)** | (16) | **(30)** | (33) |
| Changes in fair value: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency | **5** | 1 | **—** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-agency | **1** | 1 | **1** | 1 |
| Fair value - end of period | $**357** | $406 | $**357** | $406 |

---

**Originations Segment**

The strategy of our Originations segment is to originate or acquire new loans and ultimately add MSRs for the servicing portfolio at a more attractive cost than purchasing MSRs in bulk transactions and to retain or recapture our existing customers by providing them with attractive refinance and purchase options. The Originations segment plays a strategically important role because its profitability is typically counter cyclical to that of the Servicing segment. Furthermore, by originating or acquiring MSRs at a more attractive cost than bulk MSR acquisitions, the Originations segment improves our overall profitability and cash flow.

Our Originations segment is one way that we help underserved consumers access the financial markets. In the six months ended June 30, 2025, our total originations included loans for approximately 8,400 customers with low FICOs (<660), 11,400 customers with income below the U.S. median household income, 22,200 first-time homebuyers, and 3,300 veterans. During this time period, we originated approximately 15,900 Ginnie Mae loans, which are designed for first-time homebuyers and low- and moderate-income customers, comprising $4.8 billion in total proceeds. Once these loans are originated, the underserved consumers become our servicing customers.

The Originations segment includes two channels:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our direct-to-consumer ("DTC") lending channel relies on our call centers, website and mobile apps, specially trained teams of licensed mortgage originators, predictive analytics and modeling utilizing proprietary data from our servicing portfolio to reach our existing customers who may benefit from a new mortgage. Depending on customer eligibility, we will refinance existing loans into conventional, government or non-agency products. Through lead campaigns and direct marketing, the direct-to-consumer channel seeks to convert leads into loans and ultimately MSRs in a cost-efficient manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our correspondent lending channel facilitates the acquisition of MSRs through purchasing newly originated residential mortgage loans that have been underwritten to investor guidelines. This includes both conventional and government-insured loans that qualify for inclusion in securitizations that are guaranteed by the GSEs. Our correspondent lending channel enables us to replenish servicing portfolio run-off typically at a better rate of return than traditional bulk acquisitions.

------

<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The following tables set forth the results of operations for the Originations segment:

**Table 11. Originations Segment Results of Operations**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | | **Six Months Ended June 30,** | **Six Months Ended June 30,** | |
| | **2025** | **2024** |<br>**Change** | **2025** | **2024** |<br>**Change** |
| Revenues |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Service related, net - Originations<sup>(1)</sup> | $**30** | $19 | $11 | $**56** | $35 | $21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain on mortgage loans held for sale |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (loss) gain on loans originated and sold<sup>(2)</sup> | **(66)** | 21 | (87) | **(109)** | 37 | (146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized servicing rights<sup>(3)</sup> | **194** | 67 | 127 | **351** | 127 | 224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net gain on mortgage loans held for sale | **128** | 88 | 40 | **242** | 164 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | **158** | 107 | 51 | **298** | 199 | 99 |
| Expenses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries, wages and benefits | **56** | 40 | 16 | **108** | 74 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan origination expenses | **17** | 9 | 8 | **28** | 19 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and other general administrative expenses | **13** | 11 | 2 | **32** | 20 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and professional service fees | **12** | 8 | 4 | **23** | 16 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **2** | 1 | 1 | **4** | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total general and administrative | **44** | 29 | 15 | **87** | 57 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | **100** | 69 | 31 | **195** | 131 | 64 |
| Other income (expenses) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | **33** | 15 | 18 | **62** | 27 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **(30)** | (15) | (15) | **(56)** | (25) | (31) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | **3** |  | 3 | **—** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | **6** |  | 6 | **6** | 2 | 4 |
| Income before income tax expense | $**64** | $38 | $26 | $**109** | $70 | $39 |
| Weighted average note rate - mortgage loans held for sale | **7.8%** | 8.1% | (0.3)% | **7.9%** | 8.0% | (0.1)% |
| Weighted average cost of funds - warehouse facilities (excluding facility fees) | **5.4%** | 6.9% | (1.5)% | **5.5%** | 6.9% | (1.4)% |

---

<sup>(1)</sup> Service related, net - Originations refers to fees collected from customers for originated loans and from other lenders for loans purchased through the correspondent channel, and includes loan application, underwriting and other similar fees.

<sup>(2)</sup> Net gain on loans originated and sold (excluding capitalized servicing rights) represents the unrealized and realized gains and losses from the origination, purchase, and sale of loans as well as the unrealized and realized gains and losses from related derivative instruments. Gains from the origination and sale of loans are affected by the volume and margin of our originations activity which can vary based upon mortgage interest rates.

<sup>(3)</sup> Capitalized servicing rights represent the fair value attributed to mortgage servicing rights at the time in which they are retained in connection with the sale of loans during the period.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**Table 12. Originations - Key Metrics**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | | **Six Months Ended June 30,** | **Six Months Ended June 30,** | |
| | **2025** | **2024** |<br>**Change** | **2025** | **2024** |<br>**Change** |
| **Key Metrics** |  |  |  |  |  |  |
| DTC PTA lock volume<sup>(1)</sup> | $**2589** | $1841 | $748 | $**4614** | $3317 | $1297 |
| Correspondent PTA lock volume<sup>(1)</sup> | **7144** | 2632 | 4512 | **13961** | 4169 | 9792 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total PTA lock volume | $**9733** | $4473 | $5260 | $**18575** | $7486 | $11089 |
| DTC funded volume | $**2575** | $1671 | $904 | $**4432** | $3011 | $1421 |
| Correspondent funded volume | **6868** | 2123 | 4745 | **13330** | 3661 | 9669 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total funded volume<sup>(2)</sup> | $**9443** | $3794 | $5649 | $**17762** | $6672 | $11090 |
| DTC volume of loans sold | $**2448** | $1548 | $900 | $**4138** | $2771 | $1367 |
| Correspondent volume of loans sold | **6867** | 1814 | 5053 | **13259** | 3381 | 9878 |
| &nbsp;&nbsp;&nbsp;&nbsp;Volume of Originations loans sold | $**9315** | $3362 | $5953 | $**17397** | $6152 | $11245 |
| Recapture percentage<sup>(3)</sup> | **16.9%** | 21.6% | (4.7)% | **18.0%** | 22.7% | (4.7)% |
| Refinance recapture percentage<sup>(4)</sup> | **46.7%** | 72.5% | (25.8)% | **46.3%** | 70.4% | (24.1)% |
| Purchase as a percentage of funded volume | **69.6%** | 62.4% | 7.2% | **70.7%** | 59.2% | 11.5% |
| Value of capitalized servicing on retained settlements | **208 bps** | 221 bps | (13) bps | **204 bps** | 226 bps | (22) bps |
| **Originations Margin** |  |  |  |  |  |  |
| Revenue | $**158** | $107 | $51 | $**298** | $199 | $99 |
| PTA lock volume | $**9733** | $4473 | $5260 | $**18575** | $7486 | $11089 |
| Revenue as a percentage of PTA lock volume<sup>(5)</sup> | **1.62%** | 2.39% | (0.77)% | **1.60%** | 2.66% | (1.06)% |
| Expenses<sup>(6)</sup> | $**94** | $69 | $25 | $**189** | $129 | $60 |
| Funded volume | $**9443** | $3794 | $5649 | $**17762** | $6672 | $11090 |
| Expenses as a percentage of funded volume<sup>(7)</sup> | **1.00%** | 1.82% | (0.82)% | **1.06%** | 1.93% | (0.87)% |
| Originations Margin | **0.62%** | 0.57% | 0.05% | **0.54%** | 0.73% | (0.19)% |

---

<sup>(1)</sup> Pull-through adjusted ("PTA") lock volume represents the expected funding from locks taken during the period. 

<sup>(2)</sup> Funded volume for the period may include pull through adjusted lock volume from prior periods.

<sup>(3)</sup> Recapture percentage includes new loan originations for both purchase and refinance transactions where customer retention and/or property retention occur as a result of a loan payoff from our servicing portfolio. Excludes loans we are contractually unable to solicit.

<sup>(4)</sup> Refinance recapture percentage includes new loan originations for refinance transactions where customer retention and property retention occurs as a result of a loan payoff from our servicing portfolio. Excludes loans we are contractually unable to solicit.

<sup>(5)</sup> Calculated on pull-through adjusted lock volume as revenue is recognized at the time of loan lock. 

<sup>(6)</sup> Expenses include total expenses and total other income (expenses), net.

<sup>(7)</sup> Calculated on funded volume as expenses are incurred based on closing of the loan.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**Originations Segment Revenues**

Total revenues increased during the three and six months ended June 30, 2025, as compared to 2024, primarily driven by higher pull-through adjusted lock volumes and funded volumes for both DTC and correspondent channels.

**Originations Segment Expenses**

Total expenses increased during the three months ended June 30, 2025, as compared to 2024, primarily due to an increase in salaries, wages and benefits expense, and loan origination expenses. The increase in salaries, wages and benefits expense in 2025 was primarily driven by variable compensation attributable to higher originations funding volume. Loan originations expenses increased primarily due to higher originations volume in both channels.

Total expenses increased during the six months ended June 30, 2025, as compared to 2024, primarily due to an increase in salaries, wages and benefits expense, and corporate and other general administrative expenses. The increase in salaries, wages and benefits expense in 2025 was primarily driven by variable compensation attributable to higher originations funding volume. Corporate and other general administrative expenses increased primarily due to the Flagstar third-party origination operations, which were acquired in the fourth quarter of 2024, being fully operational in 2025.

**Originations Segment Other Income, Net**

Interest income relates primarily to mortgage loans held for sale. Interest expense is associated with the warehouse facilities utilized to finance newly originated loans. There were no material changes for other income (expenses), net, during the three and six months ended June 30, 2025, as compared to 2024, since interest income and interest expense increased commensurately and largely offset.

**Originations Margin**

The Originations Margin for the three months ended June 30, 2025 increased, as compared to 2024, primarily due to lower expenses as a percentage of funded volume driven by process improvement. Direct-to-consumer channel mix was 27% and 41% for the three months ended June 30, 2025 and 2024, respectively.

The Originations Margin for the six months ended June 30, 2025 decreased, as compared to 2024, primarily due to lower revenue as a percentage of PTA lock volume driven by lower margins from a shift in channel mix from higher margin direct-to-consumer to lower margin correspondent. Direct-to-consumer channel mix was 25% and 44% for the six months ended June 30, 2025 and 2024, respectively.

**Corporate/Other**

Corporate/Other includes the results of Xome's operations, the Company's unallocated overhead expenses (which include the costs of executive management and other corporate functions that are not directly attributable to our operating segments), changes in equity investments and interest expense on our unsecured senior notes. In addition, Corporate/Other includes eliminations related to intersegment hedge fair value changes.

The following table set forth the selected financial results for Corporate/Other:

**Table 13. Corporate/Other Selected Financial Results**<br>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | | **Six Months Ended June 30,** | **Six Months Ended June 30,** | |
| | **2025** | **2024** |<br>**Change** | **2025** | **2024** |<br>**Change** |
| **Corporate/Other - Operations** |  |  |  |  |  |  |
| Total revenues | $**16** | $20 | $(4) | $**33** | $42 | $(9) |
| Total expenses | **82** | 60 | 22 | **177** | 130 | 47 |
| Interest expense | **81** | 67 | 14 | **162** | 129 | 33 |
| Other expense, net | **(4)** | (8) | 4 | **(12)** | (11) | (1) |
| **Key Metrics** |  |  |  |  |  |  |
| Average exchange inventory under management | **25778** | 25887 | (109) | **25530** | 27129 | (1599) |

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Total revenues decreased during the three and six months ended June 30, 2025, as compared to 2024, primarily due to a decline in Xome revenues as the average exchange volume decreased.

Total expenses increased during the three and six months ended June 30, 2025, as compared to 2024, primarily attributable to transaction costs related to the merger with Rocket and transition costs associated with the Flagstar Transaction incurred in 2025.

Interest expense increased during the three and six months ended June 30, 2025, as compared to 2024, due to the issuance of the 2032 Notes in February 2024 and the 2029 Notes in August 2024. For further discussion, refer to *Note 9, Indebtedness*, in the Notes to the Condensed Consolidated Financial Statements.

Other expense, net decreased in the three months ended June 30, 2025 as compared to 2024 primarily due to reduction in the bargain purchase gain related to an acquisition in 2024. Other expense, net remained consistent for the six months ended June 30, 2025, as compared to 2024.

**Liquidity and Capital Resources**<br>

We measure liquidity by unrestricted cash and availability of borrowings on our advance, warehouse and MSR facilities. We held cash and cash equivalents on hand of $783 as of June 30, 2025 compared to $753 as of December 31, 2024. We have sufficient borrowing capacity to support our operations. As of June 30, 2025, total available borrowing capacity for advance, warehouse, and MSR facilities was $15,101, of which $3,058 was collateralized and immediately available to draw. During the six months ended June 30, 2025, we increased capacity on our MSR and warehouse facilities by $500 and $350, respectively. For more information on our advance, warehouse, and MSR facilities, see *Note 9, Indebtedness*, in the Notes to the Condensed Consolidated Financial Statements.

There have been no significant changes to our sources and uses of cash as disclosed in our Annual Reports on Form 10-K for the year ended December 31, 2024.

***Cash Flows***

The table below presents cash flows information:

**Table 14. Cash Flows**<br>

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| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | |
| | **2025** | **2024** |<br>**Change** |
| Net cash attributable to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating activities | $**525** | $(136) | $661 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investing activities | **(150)** | (1273) | 1123 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing activities | **(397)** | 1473 | (1870) |
| Net (decrease) increase in cash, cash equivalents, and restricted cash | $**(22)** | $64 | $(86) |

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*<u>Operating activities</u>*

Operating activities generated cash of $525 during the six months ended June 30, 2025, compared to cash used of $136 in 2024. The change was primarily due to an increase of $552 in cash generated from originations net sales activities, partially offset by an increase of $203 in cash used for the repurchase of loan assets out of Ginnie Mae securitizations.

*<u>Investing activities</u>*

Cash used in investing activities decreased to $150 during the six months ended June 30, 2025 from $1,273 in 2024. The decrease was primarily due to a reduction of $1,147 in cash used for the purchase of mortgage servicing rights in 2025.

*<u>Financing activities</u>*

Our financing activities used cash of $397 during the six months ended June 30, 2025, compared to generated cash of $1,473 in 2024. The change was primarily due to the proceeds of $1,000 from the issuance of the 2032 unsecured senior notes in the first quarter of 2024. In addition, advance, warehouse and MSR facilities had net payment of $341 during the six months ended June 30, 2025, compared to net borrowing of $621 in 2024.

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**Capital Resources**

***Capital Structure and Debt***

We require access to external financing resources from time to time depending on our cash requirements, assessments of current and anticipated market conditions and after-tax cost of capital. If needed, we believe additional capital could be raised through a combination of issuances of equity, corporate indebtedness, asset-backed acquisition financing and/or cash from operations. Our access to capital markets can be impacted by factors outside our control, including economic conditions.

*<u>Financial Covenants</u>*

Our credit facilities contain various financial covenants, which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements, which are measured at our primary operating subsidiary, Nationstar Mortgage LLC, as well as Cypress Loan Servicing LLC. As of June 30, 2025, we were in compliance with our required financial covenants.

*<u>Seller/Servicer Financial Requirements</u>*

We are also subject to net worth, liquidity and capital ratio requirements established by the Federal Housing Finance Agency ("FHFA") for Fannie Mae and Freddie Mac ("Enterprises") Seller/Servicers, and Ginnie Mae for single family issuers, as summarized below. These requirements apply to our operating subsidiaries, Nationstar Mortgage LLC, and Cypress Loan Servicing LLC.

*Minimum Net Worth*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• FHFA - a net worth base of $2.5 plus a dollar amount equal to or exceeding the sum of (i) 25 basis points of the sellers/servicer's residential first lien mortgage servicing UPB, serviced for the Enterprises, plus (ii) 25 basis points of non-agency serviced UPB, plus (iii) 35 basis points of the sellers/servicer's residential first lien mortgage servicing UPB serviced for Ginnie Mae.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ginnie Mae - a net worth equal to the sum of $2.5, plus (i) 35 basis points of the issuer's total effective Ginnie Mae single-family outstanding obligations, plus (ii) 25 basis points of the issuer's total Enterprises single family outstanding servicing portfolio balance, plus (iii) 25 basis points of the issuer's total non-agency single family servicing portfolio.

*Minimum Liquidity*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* FHFA - a base Liquidity of eligible assets equal to or exceeding*:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*◦* 7 basis points of sellers/servicer's residential first lien mortgage servicing UPB serviced for the Enterprises, if the seller/servicer remits (or an Enterprise draws) interest or principal, or both, as scheduled, regardless of whether principal or interest has been collected from the customer, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 3.5 basis points of the sellers/servicer's residential first lien mortgage servicing UPB serviced for the Enterprises, if the seller/servicer remits (or an Enterprise draws) the interest and principal only as actually collected from the customer, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 3.5 basis points of the seller/servicer's non-agency servicing UPB, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 10 basis points of the seller/servicer's residential first lien mortgage servicing UPB serviced for Ginnie Mae.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ In addition, an origination liquidity equal to or exceeding 50 basis points of the sum of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Residential first lien mortgages held for sale, at lower of cost or market

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Residential first lien mortgages held for sale, at fair value, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.UPB of interest rate lock commitments after fallout adjustments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Supplemental liquidity at all time equal to or exceeding the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.2 basis points of the sellers/servicer's residential mortgage servicing UPB serviced for the Enterprises, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.5 basis points of the sellers/servicer's residential mortgage servicing UPB serviced for Ginnie Mae

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Ginnie Mae – the greater of $1 or the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 10 basis points of the issuer's outstanding Ginnie Mae single-family servicing UPB, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 3.5 basis points of the issuer's outstanding Enterprises single family servicing UPB, if the issuer remits (or the Enterprise draws) the principal and interest only as actually collected from the customer, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 7 basis points of the Issuer's outstanding Enterprises single-family servicing UPB, if the issuer remits (or the Enterprise draws) the principal or interest, or both, as scheduled, regardless of whether principal or interest has been collected from the customer, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 3.5 basis points of the issuer's outstanding non-agency single-family servicing UPB.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Ginnie Mae - issuers that originated more than $1 billion in UPB of any residential first mortgage in the recent four-quarter period must have liquid assets equal to the greater of at least $1 or the sum of the points listed immediately above, plus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 50 basis points of loans held for sale, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ 50 basis points of the issuer's UPB of IRLCs after fallout adjustments

*Minimum Capital Ratio*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• FHFA and Ginnie Mae - a ratio of Tangible Net Worth to Total Assets greater than 6%.

*Secured Debt to Gross Tangible Asset Ratio*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ginnie Mae - a secured debt to gross tangible asset ratios no greater than 60%.

*Capital Requirements* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Ginnie Mae – a Risk-based Capital Ratio ("RBCR") of at least 6%. RBCR is adjusted net worth less excess MSRs divided by total risked-based assets

*Capital and Liquidity Plan*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* FHFA – Require annual capital and liquidity plan that includes MSR stress tests as part of the plan.

As of June 30, 2025, Nationstar Mortgage LLC and Cypress Loan Servicing LLC were in compliance with our seller/servicer financial requirements for FHFA and Ginnie Mae.

Since our Ginnie Mae single-family servicing portfolio for Nationstar Mortgage LLC exceeds $75 billion in UPB, we are also required to obtain an external primary servicer rating and issuer credit ratings from two different rating agencies and receive a minimum rating of a B or its equivalent. We met this requirement for all financial periods presented.

In addition, Fannie Mae or Freddie Mac may require capital ratios in excess of stated requirements. Refer to *Note 14, Capital Requirements,* in the Notes to the Condensed Consolidated Financial Statements for additional information.

**Table 15. Debt - Principal Amount**<br>

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Advance facilities | $**627** | $849 |
| Warehouse facilities | **2287** | 2016 |
| MSR facilities | **3260** | 3650 |
| Unsecured senior notes | **4950** | 4950 |

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*<u>Advance Facilities</u>*

As part of our normal course of business, we borrow money to fund servicing advances. Our servicing agreements require that we advance funds to meet contractual principal and interest payments for certain investors, and to pay taxes, insurance, foreclosure costs and various other items that are required to preserve the assets being serviced. Delinquency rates and prepayment speeds affect the size of servicing advance balances, and we exercise our ability to stop advancing principal and interest where the pooling and servicing agreements permit, where the advance is deemed to be non-recoverable from future proceeds. These servicing requirements affect our liquidity. We rely upon several counterparties to provide us with financing facilities to fund a portion of our servicing advances. As of June 30, 2025, we had a total borrowing capacity of $1,400, of which we could borrow an additional $773.

*<u>Warehouse Facilities</u>*

Loan origination activities generally require short-term liquidity in excess of amounts generated by our operations. The loans we originate are financed through several warehouse lines on a short-term basis. We typically hold the loans for approximately 30 days and then sell or place the loans in government securitizations in order to repay the borrowings under the warehouse lines. Our ability to fund current operations depends upon our ability to secure these types of short-term financings on acceptable terms and to renew or replace the financings as they expire. As of June 30, 2025, we had a total borrowing capacity of $6,201, of which we could borrow an additional $3,914.

*<u>MSR Facilities</u>*

Our MSR facilities provide financing for our servicing portfolio and investments. As of June 30, 2025, we had a total borrowing capacity of $7,500, of which we could borrow an additional $4,240.

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*<u>Unsecured Senior Notes</u>*

From 2021 to 2024, we completed offerings of unsecured senior notes with maturity dates ranging from 2026 to 2032. In connection with an acquisition in 2023, we assumed an unsecured senior note with a maturity date in 2026. We pay interest semi-annually to the holders of these notes at interest rates ranging from 5.000% to 7.125%. For more information regarding our indebtedness, see *Note 9, Indebtedness*, in the Notes to the Condensed Consolidated Financial Statements.

*<u>Contractual Obligations</u>*

As of June 30, 2025, no material changes to our outstanding contractual obligations were made from the amounts previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

**Critical Accounting Policies and Estimates**

Various elements of our accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. In particular, we have identified the following policies that, due to the judgment, estimates and assumptions inherent in those policies, are critical to an understanding of our condensed consolidated financial statements. These policies relate to fair value measurements, particularly certain fair value measurements determined to be Level 3 as discussed in *Note 13, Fair Value Measurements*, in the Notes to the Condensed Consolidated Financial Statements and valuation and realization of deferred tax assets. We believe that the judgment, estimates and assumptions used in the preparation of our condensed consolidated financial statements are appropriate given the factual circumstances at the time. However, given the sensitivity of these critical accounting policies on our condensed consolidated financial statements, the use of other judgments, estimates and assumptions could result in material differences in our results of operations or financial condition. Fair value measurements considered to be Level 3 representing estimated values based on significant unobservable inputs primarily include (i) the valuation of MSRs, and (ii) the valuation of excess spread financing. For further information on our critical accounting policies and estimates, please refer to the Company's Annual Reports on Form 10-K for the year ended December 31, 2024. There have been no material changes to our critical accounting policies and estimates since December 31, 2024.

**Other Matters**

**Recent Accounting Developments**

Below provides recently issued accounting pronouncements applicable to us but not yet effective.

Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information for income taxes paid by jurisdiction. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. We are currently evaluating the impact this standard may have on our financial statement disclosures. The adoption of ASU 2023-09 only impacts disclosures and is not expected to have a material impact on our condensed consolidated financial statements.

Accounting Standards Update 2024-03, *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures ("*ASU 2024-03") requires a public entity to disclose, at each interim and annual reporting period, certain disaggregated expenses included in each relevant expense caption, as well as the total amount of selling expenses and, in annual periods, an entity's definition of selling expenses. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating this ASU to determine its impact on the Company's disclosures.

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**GLOSSARY OF TERMS** 

This Glossary of Terms defines some of the terms that are used throughout this report and does not represent a complete list of all defined terms used.

*Advance Facility.* A secured financing facility to fund advance receivables which is backed by a pool of mortgage servicing advance receivables made by a servicer to a certain pool of mortgage loans.

*Agency.* Government entities guaranteeing the mortgage investors that the principal amount of the loan will be repaid; the Federal Housing Administration, the Department of Veterans Affairs, the US Department of Agriculture and Ginnie Mae (and collectively, the "*Agencies*").

*Agency Conforming Loan.* A mortgage loan that meets all requirements (loan type, maximum amount, LTV ratio and credit quality) for purchase by Fannie Mae, Freddie Mac, or insured by the FHA, USDA or guaranteed by the VA or sold into Ginnie Mae.

*Asset-Backed Securities ("ABS").* A financial security whose income payments and value is derived from and collateralized (or "backed") by a specified pool of underlying receivables or other financial assets.

*Bulk acquisitions or purchases.* MSR portfolio acquired on non-retained basis through an open market bidding process.

*Base Servicing Fee.* The servicing fee retained by the servicer, expressed in basis points, in an excess MSR arrangement in exchange for the provision of servicing functions on a portfolio of mortgage loans, after which the servicer and the co-investment partner share the excess fees on a pro rata basis.

*Client.* Owner of the underlying mortgage servicing rights on behalf of whom we service loans.

*Conventional Mortgage Loans.* A mortgage loan that is not guaranteed or insured by the FHA, the VA or any other government agency. Although a conventional loan is not insured or guaranteed by the government, it can still follow the guidelines of GSEs and be sold to the GSEs.

*Correspondent lender, lending channel or relationship.* A correspondent lender is a lender that funds loans in their own name and then sells them off to larger mortgage lenders. A correspondent lender underwrites the loans to the standards of an investor and provides the funds at close.

*Customer.* Residential mortgage borrower.

*Delinquent Loan.* A mortgage loan that is 30 or more days past due from its contractual due date.

*Department of Veterans Affairs ("VA").* The VA is a cabinet-level department of the U.S. federal government, which guarantees certain home loans for qualified customers eligible for securitization with GNMA.

*Direct-to-consumer originations ("DTC").* A type of mortgage loan origination pursuant to which a lender markets refinancing and purchase money mortgage loans directly to selected consumers through telephone call centers, the Internet or other means.

*Excess Servicing Fees.* In an excess MSR arrangement, the servicing fee cash flows on a portfolio of mortgage loans after payment of the base servicing fee.

*Excess Spread.* MSRs with a co-investment partner where the servicer receives a base servicing fee and the servicer and co-investment partner share the excess servicing fees. This co-investment strategy reduces the required upfront capital from the servicer when purchasing or investing in MSRs.

*Excess Yield.* The remaining servicing fees above the minimum servicing fee ("GSE Base Servicing Fee"), as defined by the agencies, whereby the rights to the excess fees are separated, securitized by the GSE's and sold, while we retain the obligation to service the loan and therefore continue to receive the GSE Base Servicing Fee.

*Exchange inventory*. Consists of Xome's real estate inventory ranging from pre-foreclosure to bank-owned properties.

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*Federal National Mortgage Association ("Fannie Mae" or "FNMA").* FNMA was federally chartered by the U.S. Congress in 1938 to support liquidity, stability, and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. Fannie Mae buys mortgage loans from lenders and resells them as mortgage-backed securities in the secondary mortgage market.

*Federal Housing Administration ("FHA").* The FHA is a U.S. federal government agency within the Department of Housing and Urban Development (HUD). It provides mortgage insurance on loans made by FHA-approved lenders in compliance with FHA guidelines throughout the United States.

*Federal Housing Finance Agency ("FHFA").* A U.S. federal government agency that is the regulator and conservator of Fannie Mae and Freddie Mac and the regulator of the 12 Federal Home Loan Banks.

*Federal Home Loan Mortgage Corporation ("Freddie Mac" or "FHLMC").* Freddie Mac was chartered by Congress in 1970 to stabilize the nation's residential mortgage markets and expand opportunities for homeownership and affordable rental housing. Freddie Mac participates in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed mortgage-related securities.

*Float earnings*. Interest earned on balances in custodial accounts, which represent collections of principal and interest received from customers on behalf of investors and tax and insurance payments.

*Forbearance.* An agreement between the mortgage servicer or lender and customer for a temporary postponement of mortgage payments. It is a form of repayment relief granted by the lender or creditor in lieu of forcing a property into foreclosure.

*Government National Mortgage Association ("Ginnie Mae" or "GNMA").* GNMA is a self-financing, wholly owned U.S. Government corporation within HUD. Ginnie Mae guarantees the timely payment of principal and interest on MBS backed by federally insured or guaranteed loans - mainly loans insured by the FHA or guaranteed by the VA. Ginnie Mae securities are the only MBS to carry the full faith and credit guarantee of the U.S. federal government.

*Government-Sponsored Enterprise ("GSE").* Certain entities established by the U.S. Congress to provide liquidity, stability and affordability in residential housing. These agencies are Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks.

*Interest Rate Lock Commitments ("IRLC").* Agreements under which the interest rate and the maximum amount of the mortgage loan are set prior to funding the mortgage loan.

*Investors.* Our investors include agency investors and non-agency investors. Agency investors primarily consist of Government National Mortgage Association ("Ginnie Mae" or "GNMA") and the GSEs, Federal National Mortgage Association ("Fannie Mae" or "FNMA") and Federal Home Loan Mortgage Corp ("Freddie Mac" or "FHLMC"). Non-agency investors consist of investors in private-label securitizations.

*Loan Modification.* Temporary or permanent modifications to loan terms with the customer, including the interest rate, amortization period and term of the customer's original mortgage loan. Loan modifications are usually made to loans that are in default, or in imminent danger of defaulting.

*Loan-to-Value Ratio ("LTV").* The unpaid principal balance of a mortgage loan as a percentage of the total appraised or market value of the property that secures the loan. An LTV over 100% indicates that the UPB of the mortgage loan exceeds the value of the property.

*Lock period.* A set of periods of time that a lender will guarantee a specific rate is set prior to funding the mortgage loan.

*Loss Mitigation.* The range of servicing activities provided by a servicer in an attempt to minimize the losses suffered by the owner of a defaulted mortgage loan. Loss mitigation techniques include short-sales, deed-in-lieu of foreclosures and loan modifications, among other options.

*Mortgage-Backed Securities ("MBS").* A type of asset-backed security that is secured by a group of mortgage loans.

*Mortgage Servicing Right ("MSRs").* The right and obligation to service a loan or pool of loans and to receive a servicing fee as well as certain ancillary income. MSRs may be bought and sold, resulting in the transfer of loan servicing obligations. MSRs are designated as such when the benefits of servicing the loans are expected to more than adequately compensate the servicer for performing the servicing.

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*MSR Facility.* A line of credit backed by mortgage servicing rights that is used for financing purposes. In certain cases, these lines may be a sub-limit of another warehouse facility or alternatively exist on a stand-alone basis. These facilities allow for same or next day draws at the request of the customer.

*Non-Conforming Loan.* A mortgage loan that does not meet the standards of eligibility for purchase or securitization by Fannie Mae, Freddie Mac or Ginnie Mae.

*Option adjusted spread ("OAS").* The incremental spread added to the risk-free rate to reflect embedded (prepayment) optionality and other risk inherent in the MSRs or excess spread financing used to discount future cash flows for fair value purposes.

*Originations.* The process through which a lender provides a mortgage loan to a customer.

*Prepayment Speed.* The rate at which voluntary mortgage prepayments occur or are projected to occur. The statistic is calculated on an annualized basis and expressed as a percentage of the outstanding principal balance.

*Primary Servicer.* The servicer that owns the right to service a mortgage loan or pool of mortgage loans. This differs from a subservicer, which has a contractual agreement with the primary servicer to service a mortgage loan or pool of mortgage loans in exchange for a subservicing fee based upon portfolio volume and characteristics.

*Prime Mortgage Loan.* Generally, a high-quality mortgage loan that meets the underwriting standards set by Fannie Mae or Freddie Mac and is eligible for purchase or securitization in the secondary mortgage market. Prime Mortgage loans generally have lower default risk and are made to customers with excellent credit records and a monthly income at least three to four times greater than their monthly housing expenses (mortgage payments plus taxes and other debt payments) as well as significant other assets. Mortgages not classified as prime mortgage loans are generally called either sub-prime or Alt-A.

*Private Label Securitizations ("PLS").* Securitizations that do not meet the criteria set by Fannie Mae, Freddie Mac or Ginnie Mae.

*Pull-through adjusted ("PTA") lock volume.* Represents the expected funding from locks taken during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

*Real Estate Owned ("REO").* Property acquired by the servicer on behalf of the owner of a mortgage loan or pool of mortgage loans, usually through foreclosure or a deed-in-lieu of foreclosure on a defaulted loan. The servicer or a third-party real estate management firm is responsible for selling the REO. Net proceeds of the sale are returned to the owner of the related loan or loans. In most cases, the sale of REO does not generate enough to pay off the balance of the loan underlying the REO, causing a loss to the owner of the related mortgage loan.

*Recapture.* Voluntarily prepaid loans that are expected to be refinanced by the related servicer.

*Refinancing.* The process of working with existing customers to refinance their mortgage loans. By refinancing loans for customers we currently service, we retain the servicing rights, thereby extending the longevity of the servicing cash flows.

*Servicing.* The performance of contractually specified administrative functions with respect to a mortgage loan or pool of mortgage loans. Duties of a servicer typically include, among other things, collecting monthly payments, maintaining escrow accounts, providing periodic monthly statements to the customer and monthly reports to the loan owners or their agents, managing insurance, monitoring delinquencies, executing foreclosures (as necessary), and remitting fees to guarantors, trustees and service providers. A servicer is generally compensated with a specific fee outlined in the contract established prior to the commencement of the servicing activities.

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*Servicing Advances.* In the course of servicing loans, servicers are required to make advances that are reimbursable from collections on the related mortgage loan or pool of loans. There are typically three types of servicing advances: P&I Advances, T&I Advances and Corporate Advances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) P&I Advances cover scheduled payments of principal and interest that have not been timely paid by customers. P&I Advances serve to facilitate the cash flows paid to holders of securities issued by the residential MBS trust. The servicer is not the insurer or guarantor of the MBS and thus has the right to cease the advancing of P&I, when the servicer deems the next advance nonrecoverable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) T&I Advances pay specified expenses associated with the preservation of a mortgaged property or the liquidation of defaulted mortgage loans, including but not limited to property taxes, insurance premiums or other property-related expenses that have not been timely paid by customers in order for the lien holder to maintain its interest in the property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Corporate Advances pay costs, fees and expenses incurred in foreclosing upon, preserving defaulted loans and selling REO, including attorneys' and other professional fees and expenses incurred in connection with foreclosure and liquidation or other legal proceedings arising in the course of servicing the defaulted mortgage loans.

Servicing Advances are reimbursed to the servicer if and when the customer makes a payment on the underlying mortgage loan at the time the loan is modified or upon liquidation of the underlying mortgage loan but are primarily the responsibility of the investor/owner of the loan. The types of servicing advances that a servicer must make are set forth in its servicing agreement with the owner of the mortgage loan or pool of mortgage loans. In some instances, a servicer is allowed to cease Servicing Advances, if those advances will not be recoverable from the property securing the loan.

*Servicing Fee.* A servicing fee is the percentage of each mortgage payment made by a customer to a mortgage servicer as compensation for keeping a record of payments, collecting, and making escrow payments, passing principal and interest payments along to the note holder.

*Subservicing.* Subservicing is the process of outsourcing the duties of the primary servicer to a third-party servicer. The third-party servicer performs the servicing responsibilities for a fee and is typically not responsible for making servicing advances, which are subsequently reimbursed by the primary servicer. The primary servicer is contractually liable to the owner of the loans for the activities of the subservicer.

*Unpaid Principal Balance ("UPB").* The amount of principal outstanding on a mortgage loan or a pool of mortgage loans. UPB is used together with the servicing fees and ancillary incomes as a means of estimating the future revenue stream for a servicer.

*U.S. Department of Agriculture ("USDA").* The USDA is a cabinet-level department of the U.S. federal government, which guarantees certain home loans for qualified customers.

*Warehouse Facility.* A type of line of credit facility used to temporarily finance mortgage loan originations to be sold in the secondary market. Pursuant to a warehouse facility, a loan originator typically agrees to transfer to a counterparty certain mortgage loans against the transfer of funds by the counterpart, with a simultaneous agreement by the counterpart to transfer the loans back to the originator at a date certain, or on demand, against the transfer of funds from the originator.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**Item 3. *Quantitative and Qualitative Disclosures about Market Risk***

Refer to the discussion included in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes in the types of market risks faced by us since December 31, 2024.

***Sensitivity Analysis***

We assess our market risk based on changes in interest rates utilizing a sensitivity analysis. The sensitivity analysis measures the potential impact on fair values based on hypothetical changes (increases and decreases) in interest rates.

We use a duration-based model in determining the impact of interest rate shifts on our loan portfolio, certain other interest-bearing liabilities measured at fair value and interest rate derivatives portfolios. The primary assumption used in these models is that an increase or decrease in the benchmark interest rate produces a parallel shift in the yield curve across all maturities.

We utilize a discounted cash flow analysis to determine the fair value of MSRs and the impact of parallel interest rate shifts on MSRs. The discounted cash flow model incorporates prepayment speeds, OAS, costs to service, delinquencies, ancillary revenues, recapture rates and other assumptions that management believes are consistent with the assumptions that other similar market participants use in valuing the MSRs. The key assumptions to determine fair value include prepayment speed, OAS and cost to service. However, this analysis ignores the impact of interest rate changes on certain material variables, such as the benefit or detriment on the value of future loan originations, non-parallel shifts in the spread relationships between MBS, swaps and U.S. Treasury rates and changes in primary and secondary mortgage market spreads. For mortgage loans, IRLCs, forward delivery commitments on MBS and treasury futures, we rely on a model in determining the impact of interest rate shifts. In addition, the primary assumption used for IRLCs, is the customer's propensity to close their mortgage loans under the commitment.

Our total market risk is influenced by a wide variety of factors including market volatility and the liquidity of the markets. There are certain limitations inherent in the sensitivity analysis presented, including the necessity to conduct the analysis based on a single point in time and the inability to include the complex market reactions that normally would arise from the market shifts modeled.

We used June 30, 2025 market rates on our instruments to perform the sensitivity analysis. The estimates are based on the market risk sensitive portfolios described in the preceding paragraphs and assume instantaneous, parallel shifts in interest rate yield curves. These sensitivities are hypothetical and presented for illustrative purposes only. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in fair value may not be linear.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

The following table summarizes the estimated change in the fair value of our assets and liabilities sensitive to interest rates as of June 30, 2025 given hypothetical instantaneous parallel shifts in the yield curve. Actual results could differ materially.

**Table 16. Change in Fair Value**<br>

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** |
| | **Down 25 bps** | **Up 25 bps** |
| Increase (decrease) in assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage servicing rights at fair value | $**(257)** | $**230** |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held for sale at fair value | **9** | **(9)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury futures | **92** | **(90)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward MBS trades | **85** | **(92)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate lock commitments | **11** | **(13)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total change in assets | **(60)** | **26** |
| Increase (decrease) in liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage servicing rights financing at fair value | **(1)** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess spread financing at fair value | **(3)** | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward MBS trades | **25** | **(31)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate lock commitments | **(1)** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total change in liabilities | **20** | **(27)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total, net change | $**(80)** | $**53** |

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**Item 4. *Controls and Procedures***

**Evaluation of Disclosure Controls and Procedures**

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended ("Exchange Act"), as of June 30, 2025.

Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2025, our disclosure controls and procedures are effective. Disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

**Changes in Internal Control over Financial Reporting**

During the three months ended June 30, 2025, no changes in our internal control over financial reporting occurred that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**Limitations on Effectiveness of Controls and Procedures**

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

***PART II – OTHER INFORMATION***

**Item 1. *Legal Proceedings*** 

The Company and its subsidiaries are routinely and currently involved in a number of legal proceedings, including, but not limited to, judicial, arbitration, regulatory and governmental proceedings related to matters that arise in connection with the conduct of the Company's business. While it is not possible to predict the outcome of any of these matters, based on the Company's assessment of the facts and circumstances, it does not believe any of these matters, individually or in the aggregate, will have a material adverse effect on the financial position, results of operations or cash flows of the Company. See *Note 15, Commitments and Contingencies*, of the Notes to the Condensed Consolidated Financial Statements within Part I, Item 1*. Financial Statements*, of this Form 10-Q.

**Item 1A. *Risk Factors***

There have been no material changes or additions to the risk factors previously disclosed under "Risk Factors" included in our Annual Report on Form 10-K filed for the year ended December 31, 2024.

**Item 2. *Unregistered Sales of Equity Securities and Use of Proceeds***

In October 2022, our Board of Directors authorized a new repurchase plan of $200 million of our outstanding common stock and authorized an additional $200 million in each of July 2023 and July 2024. The stock repurchase program may be suspended, modified or discontinued at any time at our discretion. As of June 30, 2025, $190 million of common stock remain available for repurchase. During the three months ended June 30, 2025, no shares of our common stock were repurchased.

**Item 3. *Defaults Upon Senior Securities***

None.

**Item 4. *Mine Safety Disclosures***

Not applicable.

**Item 5. *Other Information***

<u>Rule 10b5-1 Plan Trading Arrangements</u>

On June 13, 2025, Jay Bray, our Chairman and Chief Executive Officer, entered into a pre-arranged stock trading plan (the "10b5-1 Plan") with a brokerage firm to sell up to a maximum of 240,000 shares of the Company's common stock between October 2, 2025 and October 2, 2026. The 10b5-1 Plan was entered into during an open insider trading window and is intended to satisfy the affirmative defense of Rule 10b5-1 (c) under the Securities Exchange Act of 1934, as amended, and the Company's policies regarding transactions in Company securities.

<u>Certain Compensation Arrangements</u>

As previously reported, on January 9, 2025, Mike Rawls, EVP & Chief Executive Officer of Xome, notified the Company of his intention to retire from his position at the Company on June 30, 2025. On July 18, 2025, the Compensation Committee of the Board of Directors of the Company approved (i) a pro-rated Executive Management Incentive Program bonus at target for Mr. Rawls in the amount of $540,000 in recognition of Mr. Rawls' service to the Company during 2025 and (ii) the Company's payment of Mr. Rawls' COBRA coverage for 18 months.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**Item 6. *Exhibits***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit <br>Number** | **Description** | **Form** | **File No.** | **Exhibit** | **Filing Date** | **Filed or Furnished Herewith** |
| 10.1 | <u>[Amendment Number 10 dated June 24, 2025 to Mortgage Loan Participation Sale Agreement dated as of August 30, 2016 between JPMorgan Chase Bank, National Association, as purchaser and Nationstar Mortgage LLC, as seller](a2025-q2xexhibit101.htm)</u> |  |  |  |  | X |
| 10.2 | <u>[Amendment Number Five, dated April 4, 2025 to Second Amended and Restated Loan and Security Agreement, dated as of April 3, 2023, between Nationstar Mortgage LLC, as borrower and Citibank, N.A. as lender](a2025-q2xexhibit102.htm)</u> |  |  |  |  | X |
| 31.1 | <u>[Certification by Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](a2025-q2xexhibit311.htm)</u> |  |  |  |  | X |
| 31.2 | <u>[Certification by Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](a2025-q2xexhibit312.htm)</u> |  |  |  |  | X |
| 32.1 | <u>[Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](a2025-q2xexhibit321.htm)</u> |  |  |  |  | X |
| 32.2 | <u>[Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](a2025-q2xexhibit322.htm)</u> |  |  |  |  | X |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |  |  |  |  | X |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |  |  |  |  | X |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |  |  |  |  | X |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |  |  |  |  | X |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |  |  |  |  | X |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |  |  |  |  | X |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101.) |  |  |  |  | X |

---

†&nbsp;&nbsp;&nbsp;&nbsp;Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of such schedules and exhibits, or any section thereof, to the SEC upon its request.

\*\*&nbsp;&nbsp;&nbsp;&nbsp;Management contract, compensatory plan or arrangement.

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<u>[**Table of Contents**](#i12e8730dadd24c319311717a982ffcbc_7)</u>

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| | MR. COOPER GROUP INC. |
| July 23, 2025 | /s/ Jay Bray |
| Date | **Jay Bray<br>Chief Executive Officer<br>(Principal Executive Officer)** |
| July 23, 2025 | /s/ Kurt Johnson |
| Date | **Kurt Johnson<br>Executive Vice President & Chief Financial Officer<br>(Principal Financial and Accounting Officer)** |

---

## Exhibit 10.1

**&nbsp;&nbsp;&nbsp;&nbsp;<u>Exhibit 10.1</u>**

**AMENDMENT NO. 10<br>TO MORTGAGE LOAN PARTICIPATION SALE AGREEMENT**

Amendment No. 10 to the Mortgage Loan Participation Sale Agreement, dated as of June 24, 2025 (this "<u>Amendment</u>") is between JPMorgan Chase Bank, National Association (the "<u>Purchaser</u>") and Nationstar Mortgage LLC (the "<u>Seller</u>").

<u>RECITALS</u>

The parties hereto are parties to that certain (i) Mortgage Loan Participation Sale Agreement, dated as of August 30, 2016 (as amended, restated, supplemented, or otherwise modified from time to time prior to the date hereof, the "<u>Existing Participation Agreement</u>"; and as amended by this Amendment, the "<u>Participation Agreement</u>"); and (ii) Pricing Side Letter and Fee Letter, dated as of August 30, 2016 (as amended, restated, supplemented, or otherwise modified from time to time, the "<u>Pricing Side Letter</u>"). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Participation Agreement.

The parties hereto have agreed, subject to the terms and conditions of this Amendment, that the Existing Participation Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Participation Agreement.

Accordingly, the parties hereto hereby agree, in consideration of the mutual promises and mutual obligations set forth herein, that the Existing Participation Agreement is hereby amended as follows:

SECTION 1.<u>Amendment to the Existing Participation Agreement</u>. Effective as of the date hereof, the Existing Participation Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: <u>double-underlined text</u>) as set forth in (x) the changed pages of the amended text of the Participation Agreement attached as Exhibit A-1 hereto and (y) the full amended text of the Participation Agreement attached as Exhibit A-2 hereto. The parties hereto further acknowledge and agree that Exhibit A-2 constitutes the Participation Agreement.

SECTION 2.<u>Conditions Precedent to Amendment</u>. This Amendment shall be effective as of the date hereof, subject to the execution and delivery of this Amendment by all parties hereto.

SECTION 3.<u>Limited Effect</u>. Except as expressly amended and modified by this Amendment, the Existing Participation Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms.

SECTION 4.<u>Counterparts</u>. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Counterparts may be delivered electronically. Facsimile, documents executed, scanned and transmitted electronically and electronic signatures shall be deemed original signatures for purposes of this Amendment and all matters related thereto, with such facsimile, scanned and electronic signatures having the same legal effect as original signatures. The parties agree that this Amendment, any addendum or amendment hereto or any other document necessary for the consummation of the transaction

------

contemplated by this Amendment may be accepted, executed or agreed to through the use of an electronic signature in accordance with the Electronic Signatures In Global and National Commerce Act, Title 15, United States Code, Sections 7001 <u>et</u> <u>seq.</u>, the Uniform Electronic Transaction Act and any applicable state law. Any document accepted, executed or agreed to in conformity with such laws will be binding on all parties hereto to the same extent as if it were physically executed and each party hereby consents to the use of any secure third party electronic signature capture service providers, as long as such service providers use system logs and audit trails that establish a temporal and process link between the presentation of identity documents and the electronic signing, together with identifying information that can be used to verify the electronic signature and its attribution to the signer's identity and evidence of the signer's agreement to conduct the transaction electronically and of the signer's execution of each electronic signature.

SECTION 5.<u>Severability</u>. This Amendment, together with the Existing Participation Agreement and Program Documents, constitute the entire understanding between Purchaser and Seller with respect to the subject matter they cover and shall supersede any existing agreements between the parties containing general terms and conditions for repurchase transactions involving Purchased Mortgage Loans. By acceptance of this Amendment, Purchaser and Seller acknowledge that they have not made, and are not relying upon, any statements, representations, promises or undertakings not contained in this Amendment. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

SECTION 6.<u>Governing Law</u>. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS RULES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

[SIGNATURE PAGES FOLLOW]

------

IN WITNESS WHEREOF, the parties have caused their name to be duly signed to this Amendment by their respective officers thereunto duly authorized, all as of the date first above written.

<u>PURCHASER</u>:

**JPMORGAN CHASE BANK, NATIONAL ASSOCIATION**

By:&nbsp;&nbsp;&nbsp;&nbsp;*<u>/s/ Jeffrey Neufeld</u>*<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name: Jeffrey Neufeld<br>Title: Executive Director<br>

<u>SELLER</u>:

**NATIONSTAR MORTGAGE LLC**

By:&nbsp;&nbsp;&nbsp;&nbsp;*<u>/s/ Lola Akibola</u>*<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Lola Akibola<br>Title: SVP, Treasurer

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Exhibit A-1 PARTICIPATION AGREEMENT (Redline)

_______________________________________________________________________________

MORTGAGE LOAN PARTICIPATION SALE AGREEMENT

between

NATIONSTAR MORTGAGE LLC

as Seller, and

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Purchaser August 30, 2016

_______________________________________________________________________________

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"<u>Takeout Price</u>": As to each Takeout Commitment the purchase price (expressed as a percentage of par) set forth therein.

"<u>Termination Date</u>": The earlier of (i) June 27<u>26</u>, 2025<u>2026</u>, and (ii) upon the occurrence and continuance of a Servicer Termination Event under the Agreement.

"<u>Transaction</u>": Each of (i) each agreement by Purchaser to purchase, and by Seller to sell, a Mortgage Pool as evidenced by a Participation Certificate under the terms and conditions of this Agreement; (ii) Seller's performance of its obligations both hereunder respecting such Mortgage Pool and under the Custodial Agreement; (iii) the issuance and delivery of the related Agency Security together with Seller's undertakings respecting the facilitation of such Agency Security issuance; (iv) the delivery of the related Agency Security to the Takeout Buyer under each Takeout Commitment; (v) Purchaser's exercise of its rights and remedies hereunder and in the Custodial Agreement in the event of an Agency Security Issuance Failure or Servicer Termination Event; and (vi) as appropriate, Seller's servicing of the Mortgage Pool as described herein.

"<u>USDA</u>": The United States Department of Agriculture or any successor thereto. "<u>USDA Loan</u>": A Mortgage Loan that is or will be guaranteed by the USDA. "<u>USDA Regulations</u>": The regulations promulgated by the USDA under the

Helping Families Save Their Homes Act of 2009, as amended from time to time and codified in 7 Code of Federal Regulations, and other USDA issuances relating to USDA Loans, including the related handbooks, circulars, notices and mortgagee letters.

"<u>VA</u>": The Department of Veterans Affairs.

"<u>VA Approved Lender</u>": A lender that is approved by the VA to act as a lender in connection with the origination of any VA Loan subject to a VA Loan Guaranty Agreement.

"<u>VA Loan</u>": A Mortgage Loan that is or will be the subject of a VA Loan Guaranty Agreement.

"<u>VA Loan Guaranty Agreement</u>": The obligation of the United States to pay a specific percentage of a Mortgage Loan (subject to a maximum amount) pursuant to the Serviceman's Readjustment Act, as amended.

"<u>Wire Instructions</u>": The wiring instructions as provided by the Seller to the Purchaser and attached hereto as Exhibit C.

**Section 2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchases of Participation Certificates</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser may in its sole discretion from time to time, purchase one or more Participation Certificates from Seller at the Purchase Price. Prior to Purchaser's purchase of any Participation Certificate, the Conditions Precedent set forth in <u>Section 8</u> shall be satisfied or waived.

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**<u>PURCHASER NOTICES</u>**

Name: Jonathan Davis<u>Rifat Chowdhury</u> <br>Title:&nbsp;&nbsp;&nbsp;&nbsp;Executive<u>Managing</u> Director <br>Telephone: (212) 834-3850<u>834-5873</u><br> Facsimile:&nbsp;&nbsp;&nbsp;&nbsp;(917) 464-4160 <br>E-mail: jonathan Davis<u>Rifat Chowdhury</u>@jpmorgan.com

**<u>PRCHASER AUTHORIZATIONS</u>**

Address:&nbsp;&nbsp;&nbsp;&nbsp;JPMorgan Chase Bank, National Association<br>383 Madison Avenue 8th Floor<br>New York, New York 10179

Any of the persons whose signatures and titles appear below, including any other authorized officers, are authorized, acting singly, to act for Purchaser under this Agreement:

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| | | |
|:---|:---|:---|
| <u>Name</u> | <u>Title</u> | <u>Signature</u> |
| Michael Brown | Managing Director | |
| Rifat Chowdhury | Managing Director | |
| Jonathan DavisJeffrey Neufeld | Executive Director | |
| Noah Noonan | Executive Director | |
| Jason Brand | Executive Director | |
| Josh Peters | Executive Director | |
| Sean NeufferWalker | Executive Director | |
| <u>Rebecca Wang</u> | <u>Executive Director</u> | |
| <u>Kelly Sun</u> | <u>Vice President</u> | |
| Michael Kammerer | Vice President | |
| Sophia RedzajRoshni Bhasin | Vice President | |
| Jennifer AimanJohn Getchius | Vice President | |
| <u>Annie Sun</u> | <u>Vice President</u> | |
| <u>Arat Apik</u> | <u>Executive Director</u> | |
| Michelle Peppel | Vice President | |
| <u>Natalie Sheeran</u> | <u>Vice President</u> | |
| <u>Patrick Giudice</u> | <u>Vice President</u> | |
| Patrick Giudice<u>John</u> <u>Kirincic</u> | Vice President | |
| Harry Lemberg<u>Marek</u> <u>Kostyszyn</u> | Vice President | |
| <u>Juan Dottore</u> | <u>Associate</u> | |
| <u>Kameron Kilmer</u> | <u>Associate</u> | |
| <u>Alan McCaffery</u> | <u>Associate</u> | |
| <u>Mark Dobos</u> | <u>Associate</u> | |
| <u>Nikolay Savov</u> | <u>Associate</u> | |
| <u>Scarlett Fan</u> | <u>Associate</u> | |
| <u>Marcos Czerwinski</u> | <u>Associate</u> | |
| <u>Moira Coto</u> | <u>Associate</u> | |

---

------

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| | | |
|:---|:---|:---|
| <u>Name</u> | <u>Title</u> | <u>Signature</u> |
| <u>Anthony Lassiter</u> | <u>Vice President</u> | |
| <u>Felencia Walston</u> | <u>Vice President</u> | |
| <u>Madison Hernandez</u> | <u>Associate</u> | |
| <u>Jennifer Torres</u> | <u>Associate</u> | |
| <u>Kimberly McGee</u> | <u>Associate</u> | |
| <u>Seth Sjogren</u> | <u>Associate</u> | |
| <u>Ted Morales</u> | <u>Associate</u> | |
| <u>Kassandra Buckley</u> | <u>Operations Supervisor</u> | |
| Marc Ferrante<u>Maria</u> <u>Dolores Nasif</u> | Vice President | |

---

## Exhibit 10.2

**<u>Exhibit 10.2</u>**

AMENDMENT NUMBER FIVE

to the

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

dated as of September 29, 2017,

as amended and restated to and including April 3, 2023,

between

NATIONSTAR MORTGAGE LLC

and

CITIBANK, N.A.

This AMENDMENT NUMBER FIVE ("<u>Amendment Number Five</u>") is made this 4th day of April, 2025 (the "<u>Amendment Effective Date</u>"), between NATIONSTAR MORTGAGE LLC ("<u>Borrower</u>") and CITIBANK, N.A. ("<u>Lender</u>"), to the Second Amended and Restated Loan and Security Agreement, dated as of September 29, 2017, as amended and restated to and including April 3, 2023, between Borrower and Lender, as such agreement may be amended from time to time (the "<u>Agreement</u>"). Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Agreement.

<u>RECITALS</u>

WHEREAS, Borrower and Lender have agreed to amend the Agreement as more specifically set forth herein; and

WHEREAS, as of the date hereof, Borrower represent to Lender that Borrower is in full compliance with all of the terms and conditions of the Agreement and each other Loan Document and no Default or Event of Default has occurred and is continuing under the Agreement or any other Loan Document.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and for the mutual promises and covenants herein contained, the parties hereto, intending to be legally bound hereby, agree as follows:

Section 1.<u>Amendments</u>. Effective as of the Amendment Effective Date, the Agreement is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Section 11.10</u> is amended by deleting such section in its entirety and replacing it with the following:

Section 11.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each party hereto agrees for the benefit of the other party that it will hold any confidential information received from the other party pursuant to this Agreement or any other Facility Document in strict confidence, as long as such information remains confidential except for disclosure to (i) its Affiliates, (ii) its legal counsel, accountants, and other professional advisors or to a permitted assignee or participant, (iii) regulatory officials if required or requested by such regulatory officials, (iv) any Person as requested pursuant to or as required by law, regulation, or legal process, (v) any Person in connection with any legal proceeding to which it is

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a party, (vi) rating agencies if requested or required by such agencies in connection with a rating, and (vii) any Applicable Agency or disclosures related to the tax treatment and tax structure of the transactions, which shall not be deemed confidential. The parties agree that this Agreement is confidential information of the Lender and Borrower. Each party also agrees that it will comply with all applicable securities laws, the Gramm-Leach-Bliley Act of 1999 (the "<u>GLB</u>") and each party agrees to treat non-public information subject to the GLB as required by the GLB for financial institutions and as required by applicable state and local privacy laws. This <u>Section 11.10</u> shall survive termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In addition, the following terms shall apply when the Lender receives Personal Information from the Borrower that is covered by the California Privacy Rights Act and its implementing regulations ("<u>CPRA</u>"). All capitalized terms used in this <u>Section 11.10(b)</u> and not otherwise defined in this Agreement shall have the same meanings as used under the CPRA. The terms used in this <u>Section 11.10(b)</u> shall supersede any inconsistent terms under this Agreement or any other Facility Document. (1) The Borrower is making Personal Information available to the Lender for the following limited and specified purposes: providing warehouse financing; and (2) with respect to the Personal Information the Borrower makes available to the Lender under this Agreement, the Lender agrees to: (a) comply with all applicable sections of the CPRA; (b) grant the Borrower the right to take reasonable and appropriate steps to ensure that the Lender uses the Personal Information provided under this Agreement in a manner consistent with the Borrower's obligations under the CPRA; (c) grant the Borrower the right, upon notice, to take reasonable and appropriate steps to stop and remediate unauthorized use of Personal Information made available to the Lender; and (d) notify the Borrower after it makes a determination that it can no longer meet its obligations under this <u>Section 11.10(b)</u> or the CPRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Schedule 1</u> to the Agreement is amended by deleting the definition of "<u>Loan Repayment Date</u>" in its entirety and replacing it with the following:

"<u>Loan Repayment Date</u>" shall mean, the earliest to occur of (i) April 2, 2027, (ii) a Change of Control of the Borrower, or (iii) the occurrence of any Acceleration Event, or if such day is not a Business Day, the immediately preceding Business Day, or such earlier date as may be notified by Lender in accordance with <u>Section 8.02(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Schedule 1</u> to the Agreement is hereby amended by adding the following definition of "<u>CPRA</u>" in the appropriate alphabetical order:

"<u>CPRA</u>" has the meaning set forth in <u>Section 11.10(b)</u>.

Section 2.<u>Fees and Expenses</u>. Borrower agrees to pay to Lender all reasonable and documented out of pocket costs and expenses incurred by Lender in connection with this Amendment Number Five (including all reasonable and documented fees and expenses of the Lender's legal counsel) in accordance with <u>Section 13.03</u> of the Agreement.

Section 3.<u>Representations</u>. Borrower hereby represents to Lender that as of the date hereof, Borrower is in full compliance with all of the terms and conditions of the Agreement and each other Loan Document and no Default or Event of Default has occurred and is continuing under the Agreement or any other Loan Document.

Section 4.<u>Binding Effect; Governing Law</u>. This Amendment Number Five shall be binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns. THIS AMENDMENT NUMBER FIVE SHALL BE CONSTRUED IN ACCORDANCE WITH,

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AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (EXCEPT FOR SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

Section 5.<u>Counterparts</u>. This Amendment Number Five shall be valid, binding, and enforceable against a party when executed and delivered by an authorized individual on behalf of the party by means of (i) an original manual signature; (ii) a faxed, scanned, or photocopied manual signature, or (iii) any other electronic signature permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, and/or any other relevant electronic signatures law, including any relevant provisions of the Uniform Commercial Code (collectively, "Signature Law"), in each case to the extent applicable. Each faxed, scanned, or photocopied manual signature, or other electronic signature, shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature. Each party hereto shall be entitled to conclusively rely upon, and shall have no liability with respect to, any faxed, scanned, or photocopied manual signature, or other electronic signature, of any other party and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity thereof. This Amendment Number Five may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts shall, together, constitute one and the same instrument. For the avoidance of doubt, original manual signatures shall be used for execution or indorsement of writings when required under the UCC or other Signature Law due to the character or intended character of the writings. The original documents shall be promptly delivered, if requested.

Section 6.<u>Limited Effect</u>. Reference to this Amendment Number Five need not be made in the Agreement or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, the Agreement, any reference in any of such items to the Agreement being sufficient to refer to the Agreement as amended hereby.

IN WITNESS WHEREOF, Borrower and Lender have caused this Amendment Number Five to be executed and delivered by their duly authorized officers as of the Amendment Effective Date.

**NATIONSTAR MORTGAGE LLC**

as Borrower

By: *<u>/s/ Lola Akibola</u>*<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Lola Akibola<br>Title: SVP, Treasurer

**CITIBANK, N.A.**,

as Lender

By: *<u>/s/ Arunthathi Theivakumaran</u>*<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Arunthathi Theivakumaran<br>Title: Vice President

## Exhibit 31.1

**<u>Exhibit 31.1</u>**

**Certification Pursuant to Rules 13a-14(a) and 15d-14(a) as Adopted Pursuant to Section**

**302 of the Sarbanes-Oxley Act of 2002**

I, Jay Bray, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q for the three months ended June 30, 2025, of Mr. Cooper Group Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | July 23, 2025 |
| */s/ Jay Bray* | */s/ Jay Bray* |
| Jay Bray | Jay Bray |
| Chief Executive Officer | Chief Executive Officer |

---

## Exhibit 31.2

**<u>Exhibit 31.2</u>**

**Certification Pursuant to Rules 13a-14(a) and 15d-14(a) as Adopted Pursuant to Section**

**302 of the Sarbanes-Oxley Act of 2002**

I, Kurt Johnson, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q for the three months ended June 30, 2025, of Mr. Cooper Group Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | July 23, 2025 |
| */s/ Kurt Johnson* | */s/ Kurt Johnson* |
| Kurt Johnson | Kurt Johnson |
| Executive Vice President & Chief Financial Officer | Executive Vice President & Chief Financial Officer |

---

## Exhibit 32.1

**<u>Exhibit 32.1</u>**

**Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the**

**Sarbanes-Oxley Act of 2002**

In connection with the Quarterly Report of Mr. Cooper Group Inc. (the "Company") on Form 10-Q for the three months ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jay Bray, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: | July 23, 2025 |
| */s/ Jay Bray* | */s/ Jay Bray* |
| Jay Bray | Jay Bray |
| Chief Executive Officer | Chief Executive Officer |

---

## Exhibit 32.2

**<u>Exhibit 32.2</u>**

**Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the**

**Sarbanes-Oxley Act of 2002**

In connection with the Quarterly Report of Mr. Cooper Group Inc. (the "Company") on Form 10-Q for the three months ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kurt Johnson, Executive Vice President & Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: | July 23, 2025 |
| */s/ Kurt Johnson* | */s/ Kurt Johnson* |
| Kurt Johnson | Kurt Johnson |
| Executive Vice President & Chief Financial Officer | Executive Vice President & Chief Financial Officer |

---

<br>