Mr. Cooper Explained

Mr. Cooper Group Inc.
Trade Name:Mr. Cooper
Former Name:WMI Holdings Corporation, Nationstar Holdings
Type:Public
Industry:Mortgage Lending
Predecessors:-->
Founders:-->
Successors:-->
Hq Location City:Coppell, Texas
Hq Location Country:U.S.
Area Served:United States
Key People:Jay Bray (chairman and CEO)
Products:Conventional Loans
FHA Loans
FHA Streamline Loans
VA Loans
VA IRRRL
Brands:Mr. Cooper
Revenue Year:2021
Income Year:2021
Net Income Year:2021
Assets Year:2021
Num Employees:8,200
Num Employees Year:2021

Mr. Cooper Group Inc., formerly WMI Holdings Corporation., was founded in 1889 and headquartered in the Dallas, Texas, area. Mr. Cooper Group is an umbrella corporation holding companies like Nationstar Mortgages, LLC, one of the largest mortgage servicers in the United States with a servicing portfolio of approximately $937 billion and more than 4.3 million customers,[1] and Xome, an online real estate marketplace,[2] among others.

History

Nationstar was founded in Denver, Colorado, in 1994 as Nova Credit Corporation. In 1997, the company moved to Dallas, Texas, where home-builder Centex Homes established Nova Credit Corporation as their in-house lender for new construction and changed the company name to Centex Credit Corporation. In 2001, Centex Credit Corporation was merged into Centex Home Equity Company, and it operated as the subprime mortgage originator and servicer for Centex until 2005.

In 2005, the decision was made to withdraw Centex Homes from non-home-building businesses, including the mortgage business. Fortress Investment Group acquired Centex Home Equity and renamed it Nationstar Mortgage in 2006.[3] [4]

In March 2012, Nationstar Mortgage Holdings, Inc. went public with an initial public offering on the New York Stock Exchange.[5]

Nationstar Mortgages, LLC, is the consumer-facing mortgage lender and servicer that operates under the service mark "Mr. Cooper".[6] In August 2017, Nationstar Mortgages, LLC, announced it was changing its name to Mr. Cooper after releasing its worst financial report to date.[7] The company stated that the name change was meant to "personalize the mortgage experience".[8] In 2018 Nationstar and WMI Holdings Corporation (WMIH), the corporate successor to the defunct Washington Mutual, merged. As a result Nationstar was delisted from the New York Stock Exchange and WMIH changed its name to Mr. Cooper Group.[9] In 2020, Mr. Cooper originated over 146,000 mortgages with a total value of over $36 billion.[10]

Controversies

In 2018, Mr. Cooper paid out millions of dollars in settlements in New York and California due to various violations of state banking laws.[11]

In 2020, Mr. Cooper agreed to a $91 million settlement with the CFPB, all 50 states, and three U.S. territories, for mishandling foreclosures and borrowers' payments.[12] More than $74 million of the settlement was directed back to consumers whose homes were foreclosed on while waiting for approval of their loan modifications and consumers whose monthly payments were increased without notice or consent.

On October 31, 2023, Mr. Cooper was the subject of a cyber-attack which forced the company to suspend its online services for four days, from November 1 to November 5, 2023.[13] The company promised to ensure that customers will not be assessed late fees, penalties, or hits to their credit score due to the service outage.[14] On November 9, 2023, Mr. Cooper confirmed that customer data was compromised in the breach, but did not disclose to what extent.[15] On December 15, 2023, Mr. Cooper confirmed in a regulatory notice with the state of Maine that 14,690,284 customers' data was exposed, including names, addresses, phone numbers, Social Security numbers, dates of birth and bank account numbers.[16]

Notes and References

  1. Web site: Revell . Eric . 2023-11-08 . Cyberattack of major mortgage servicer leaves customers without online payment option . 2023-11-09 . FOXBusiness . en-US.
  2. Web site: Cook . John . 2 December 2015 . Xome CEO Kal Raman resigns one year after taking top post at online real estate company . 8 November 2023 . GeekWire . underwritten by Talent Reach.
  3. Web site: MortgageDaily.com: Subprime Lender Changes Hands -- Fortress Investment to acquire Centex Home Equity . 2021-06-04 . 2021-06-04 . https://web.archive.org/web/20210604213130/http://www.mortgagedaily.com/ChecFortressAcquisition033006.asp . dead .
  4. Web site: Centex Home Equity to Become Nationstar Mortgage LLC. https://web.archive.org/web/20130221025522/http://www.prweb.com/releases/2006/07/prweb410931.htm. dead. February 21, 2013.
  5. Web site: Overview.
  6. Web site: 9 November 2023 . Nationstar Mortgage LLC . 9 November 2023 . NMLS Consumer Access . Nationwide Multistate Licensing System.
  7. Web site: 3 August 2017 . Nationstar posts net loss of $20 million, but the news is better than it seems .
  8. Web site: 2 May 2017 . It's official: Nationstar will become Mr. Cooper in August 2017 .
  9. Web site: Lane . Ben . 2018-08-01 . Meet the Mr. Cooper Group: Nationstar completes merger with Washington Mutual parent WMIH . 2024-08-17 . HousingWire . en-US.
  10. Web site: Nationstar Mortgage (Mr. Cooper) . December 2, 2021.
  11. Web site: Nationstar (aka Mr. Cooper) reaches $17 million mortgage settlement with NYDFS. 11 April 2018.
  12. News: Nationstar Mortgage agrees to a $91 million settlement for mishandling foreclosures and borrowers' payments . 2020-12-08 . Michelle Singletary . . Washington, D.C. . 0190-8286 . 1330888409.
  13. Web site: Griffin . Keith . 5 November 2023 . Mr. Cooper Locked Down By Cyber Attack . 8 November 2023 . National Mortgage Professional.
  14. Web site: Cowley . Stacy . 7 November 2023 . Cyberattack Disrupts Mortgage Payments for Millions of Mr. Cooper Customers . 8 November 2023 . The New York Times.
  15. Web site: Feuer . Will . 9 November 2023 . Mr Cooper Says Customer Data Was Exposed in Cyberattack . 2023-11-09 . MarketWatch . Dow Jones Newswires . EN-US.
  16. Web site: Reed . Michelle . 15 December 2023 . Data Breach Notifications . 2023-12-30 . Office of the Maine Attorney General . EN-US.