Item 7.01 Regulation FD Disclosure.
In connection with investor meetings scheduled for the week of November 7, 2022,
Mr. Cooper Group Inc. (the "Company") intends to provide the investor
presentation slides furnished as Exhibit 99.1 to this Current Report on Form
8-K. Additionally, the Company provided the following update:
• Last week, the Company completed its actions to realign capacity in the
Originations segment, consistent with reduced customer demand in a higher
mortgage-rate environment. These actions resulted in the elimination of
approximately 800 positions.
• During the fourth quarter, the Company expects to incur a charge of
approximately $20 million for the reductions in force in the Originations
segment and for other efficiency initiatives across the organization.
• Additionally, the Company clarified its outlook for servicing pretax operating
income: after ramping to $140 million in the fourth quarter, servicing pretax
operating income is expected to total between $550 and $600 million during
2023, assuming no change in current mortgage rates.
The information furnished pursuant to this Item 7.01 shall not be deemed to be
"filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), nor will such information be deemed incorporated
by reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as may be expressly set forth by specific reference in such
filing.
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements.
These forward-looking statements are subject to a number of risks, uncertainties
and assumptions. Our actual results could differ materially from those predicted
or implied. Undue reliance should not be placed on the forward-looking
statements in this Current Report on Form 8-K. We assume no obligation to update
such statements.
Non-GAAP Financial Measures
The Company utilizes non-GAAP financial measures as the measures provide
additional information to assist investors in understanding and assessing the
Company's and our business segments' ongoing performance and financial results,
as well as assessing our prospects for future performance. The adjusted
operating financial measures facilitate a meaningful analysis and allow more
accurate comparisons of our ongoing business operations because they exclude
items that may not be indicative of or are unrelated to the Company's and our
business segments' core operating performance and are better measures for
assessing trends in our underlying businesses. These notable items are
consistent with how management views our businesses. The Company is unable to
provide a reconciliation of the forward-looking non-GAAP financial measures of
Originations pretax operating income and Servicing pre-tax operating income
contained in this Form 8-K to their most directly comparable GAAP financial
measures, because the information necessary for a quantitative reconciliation of
the forward-looking non-GAAP financial measures to their respective most
directly comparable GAAP financial measure is not (and was not, when prepared)
available to the Company without unreasonable efforts due to the inherent
difficulty and impracticability of predicting certain amounts required by GAAP
with a reasonable degree of accuracy. Pre-tax income (loss) includes the impact
of certain items, such as mark-to-market in the Servicing segment, that impact
comparability between periods, which may be significant and are difficult to
project with a reasonable degree of accuracy. In addition, the Company believes
such reconciliation could imply a degree of precision that might be confusing or
misleading to investors. The probable significance of providing these
forward-looking non-GAAP financial measures without the directly comparable GAAP
financial measures is that such GAAP financial measures may be materially
different from the corresponding non-GAAP financial measures.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description
99.1 Mr. Cooper Group Inc. Investor Update, dated November 7, 2022
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