MR. COOPER GROUP INC., 10-Q filed on 10/26/2022
Quarterly Report
v3.22.2.2
Cover Page - shares
9 Months Ended
Sep. 30, 2022
Oct. 21, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2022  
Document Transition Report false  
Entity File Number 001-14667  
Entity Registrant Name Mr. Cooper Group Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 91-1653725  
Entity Address, Address Line One 8950 Cypress Waters Blvd  
Entity Address, City or Town Coppell  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 75019  
City Area Code 469  
Local Phone Number 549-2000  
Title of 12(b) Security Common stock, $0.01 par value per share  
Trading Symbol COOP  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   70,564,728
Entity Central Index Key 0000933136  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.22.2.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Assets    
Cash and cash equivalents $ 530 $ 895
Restricted cash 148 146
Mortgage servicing rights at fair value 6,408 4,223
Advances and other receivables, net of reserves of $143 and $167, respectively 831 1,228
Mortgage loans held for sale at fair value 1,581 4,381
Property and equipment, net of accumulated depreciation of $116 and $122, respectively 69 98
Deferred tax assets, net 711 991
Other assets 2,537 2,242
Total assets 12,815 14,204
Liabilities and Stockholders’ Equity    
Unsecured senior notes, net 2,673 2,670
Advance and warehouse facilities, net 3,070 4,997
Payables and other liabilities 2,428 2,392
MSR related liabilities - nonrecourse at fair value 539 778
Total liabilities 8,710 10,837
Commitments and contingencies (Note 15)
Preferred stock at $0.00001 - 10 million shares authorized, zero shares issued, zero shares outstanding; aggregate liquidation preference of zero 0 0
Common stock at $0.01 par value - 300 million shares authorized, 93.2 million shares issued 1 1
Additional paid-in-capital 1,099 1,116
Retained earnings 3,801 2,879
Treasury shares at cost - 22.7 million and 19.4 million shares, respectively (796) (630)
Total Mr. Cooper stockholders’ equity 4,105 3,366
Non-controlling interests 0 1
Total stockholders’ equity 4,105 3,367
Total liabilities and stockholders’ equity $ 12,815 $ 14,204
v3.22.2.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
Sep. 30, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Advances and other receivables, reserves $ 143,000,000 $ 167,000,000
Accumulated depreciation $ 116,000,000 $ 122,000,000
Preferred stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Preferred stock, liquidation preference $ 0 $ 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares, issued (in shares) 93,200,000 93,200,000
Treasury stock (in shares) 22,700,000 19,400,000
v3.22.2.2
Unaudited Condensed Consolidated Statements of Operations - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Revenues:        
Service related, net $ 395 $ 288 $ 1,610 $ 860
Net gain on mortgage loans held for sale 115 572 551 1,833
Total revenues 510 860 2,161 2,693
Expenses:        
Salaries, wages and benefits 183 251 614 805
General and administrative 133 151 368 476
Total expenses 316 402 982 1,281
Interest income 83 66 169 163
Interest expense (104) (118) (321) (363)
Other (expense) income, net (20) 8 197 494
Total other (expense) income, net (41) (44) 45 294
Income from continuing operations before income tax expense 153 414 1,224 1,706
Less: Income tax expense 40 104 302 410
Net income from continuing operations 113 310 922 1,296
Net (loss) income from discontinued operations 0 (11) 0 3
Net income 113 299 922 1,299
Less: Undistributed earnings attributable to participating stockholders 0 1 0 9
Less: Premium on retirement of preferred stock 0 28 0 28
Net income attributable to common stockholders $ 113 $ 270 $ 922 $ 1,262
Earnings Per Share [Abstract]        
Income (Loss) from Continuing Operations, Per Basic Share $ 1.59 $ 3.56 $ 12.71 $ 14.85
Income (Loss) from Continuing Operations, Per Diluted Share 1.55 3.42 12.37 14.20
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share 0 (0.14) 0 0.04
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share 0 (0.13) 0 0.03
Basic (in dollars per share) 1.59 3.42 12.71 14.89
Diluted (in dollars per share) $ 1.55 $ 3.29 $ 12.37 $ 14.23
v3.22.2.2
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Millions
Total
Preferred Stock
Common Stock
Additional Paid-in Capital
Retained Earnings
Treasury Share Amount
Total Mr. Cooper Stockholders’ Equity
Non-controlling Interests
Shares outstanding, beginning balance (in shares) at Dec. 31, 2020   1,000 89,457          
Stockholders' equity, beginning balance at Dec. 31, 2020 $ 2,504 $ 0 $ 1 $ 1,126 $ 1,434 $ (58) $ 2,503 $ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Shares issued / (surrendered) under incentive compensation plan (in shares)     1,242          
Shares issued / (surrendered) under incentive compensation plan (20)     (20)   0 (20)  
Share-based compensation 21     21     21  
Repurchase of common stock (in shares)     (15,578)          
Repurchase of common stock (516)         (516) (516)  
Stock Repurchased and Retired During Period, Shares   1,000            
Retirement of preferred stock (28)     (19) (9)   (28)  
Net income 1,299       1,299   1,299 0
Shares outstanding, ending balance (in shares) at Sep. 30, 2021   0 75,121          
Stockholders' equity, ending balance at Sep. 30, 2021 3,260 $ 0 $ 1 1,108 2,724 (574) 3,259 1
Shares outstanding, beginning balance (in shares) at Dec. 31, 2020   1,000 89,457          
Stockholders' equity, beginning balance at Dec. 31, 2020 2,504 $ 0 $ 1 1,126 1,434 (58) 2,503 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Repurchase of common stock (in shares)     14,800          
Shares outstanding, ending balance (in shares) at Dec. 31, 2021   0 73,777          
Stockholders' equity, ending balance at Dec. 31, 2021 3,367 $ 0 $ 1 1,116 2,879 (630) 3,366 1
Shares outstanding, beginning balance (in shares) at Jun. 30, 2021   1,000 86,149          
Stockholders' equity, beginning balance at Jun. 30, 2021 3,350 $ 0 $ 1 1,120 2,434 (206) 3,349 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Shares issued / (surrendered) under incentive compensation plan (in shares)     45          
Shares issued / (surrendered) under incentive compensation plan 0     0   0 0  
Share-based compensation 7     7     7  
Repurchase of common stock (in shares)     (11,073)          
Repurchase of common stock (368)         (368) (368)  
Stock Repurchased and Retired During Period, Shares   (1,000)            
Retirement of preferred stock (28)     (19) (9)   (28)  
Net income 299       299   299 0
Shares outstanding, ending balance (in shares) at Sep. 30, 2021   0 75,121          
Stockholders' equity, ending balance at Sep. 30, 2021 3,260 $ 0 $ 1 1,108 2,724 (574) 3,259 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock Repurchased and Retired During Period, Shares   1,000            
Shares outstanding, ending balance (in shares) at Dec. 31, 2021   0 73,777          
Stockholders' equity, ending balance at Dec. 31, 2021 3,367 $ 0 $ 1 1,116 2,879 (630) 3,366 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Shares issued / (surrendered) under incentive compensation plan (in shares)     898          
Shares issued / (surrendered) under incentive compensation plan (22)     (41)   19 (22)  
Share-based compensation 24     24     24  
Dividends paid to noncontrolling interests (1)             (1)
Repurchase of common stock (in shares)     (4,118)          
Repurchase of common stock (185)         (185) (185)  
Net income 922       922   922 0
Shares outstanding, ending balance (in shares) at Sep. 30, 2022   0 70,557          
Stockholders' equity, ending balance at Sep. 30, 2022 4,105 $ 0 $ 1 1,099 3,801 (796) 4,105 0
Shares outstanding, beginning balance (in shares) at Jun. 30, 2022   0 71,651          
Stockholders' equity, beginning balance at Jun. 30, 2022 4,037 $ 0 $ 1 1,094 3,688 (747) 4,036 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Shares issued / (surrendered) under incentive compensation plan (in shares)     42          
Shares issued / (surrendered) under incentive compensation plan (1)     (2)   1 (1)  
Share-based compensation 7     7     7  
Dividends paid to noncontrolling interests (1)             (1)
Repurchase of common stock (in shares)     (1,136)          
Repurchase of common stock (50)         (50) (50)  
Net income 113       113   113 0
Shares outstanding, ending balance (in shares) at Sep. 30, 2022   0 70,557          
Stockholders' equity, ending balance at Sep. 30, 2022 $ 4,105 $ 0 $ 1 $ 1,099 $ 3,801 $ (796) $ 4,105 $ 0
v3.22.2.2
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Operating Activities    
Net income $ 922 $ 1,299
Net (loss) income from discontinued operations 0 3
Net income from continuing operations 922 1,296
Adjustments to reconcile net income from continuing operations to net cash attributable to operating activities:    
Deferred tax expense 280 326
Net gain on mortgage loans held for sale (551) (1,833)
Provision for servicing and non-servicing reserves 22 28
Fair value changes in mortgage servicing rights (719) 296
Fair value changes in MSR related liabilities 134 (7)
Depreciation and amortization for property and equipment and intangible assets 29 45
Gain on sale of business 0 (494)
Gain on disposition of assets 223 0
Loss on MSR hedging activities 329 82
Other operating activities 75 40
Repurchases of loan assets out of Ginnie Mae securitizations (2,904) (8,530)
Mortgage loans originated and purchased for sale, net of fees (25,120) (67,507)
Sales proceeds and loan payment proceeds for mortgage loans held for sale 30,440 74,968
Changes in assets and liabilities:    
Advances and other receivables 355 (41)
Other assets 287 236
Payables and other liabilities (212) (289)
Net cash attributable to operating activities - continuing operations 3,144 (1,384)
Net cash attributable to operating activities - discontinued operations 0 614
Net cash attributable to operating activities 3,144 (770)
Investing Activities    
Sale of business, net of cash divested 0 432
Property and equipment additions, net of disposals (14) (33)
Purchase of mortgage servicing rights (1,257) (431)
Proceeds on sale of mortgage servicing rights 284 13
Other investing activities 0 1
Net cash attributable to investing activities - continuing operations (987) (18)
Net cash attributable to investing activities - discontinued operations 0 1,029
Net cash attributable to investing activities (987) 1,011
Financing Activities    
(Decrease) increase in advance and warehouse facilities (1,933) 1,950
Repayments of excess spread financing (293) 0
Settlements of excess spread financing (80) (118)
Repurchase of common stock (185) (516)
Payments for Repurchase of Preferred Stock and Preference Stock 0 28
Other financing activities (29) (33)
Net cash attributable to financing activities - continuing operations (2,520) 1,255
Net cash attributable to financing activities - discontinued operations 0 (1,495)
Net cash attributable to financing activities (2,520) (240)
Net (decrease) increase in cash, cash equivalents, and restricted cash (363) 1
Cash, cash equivalents, and restricted cash - beginning of period 1,041 913
Cash, cash equivalents, and restricted cash - end of period(1) [1] 678 914
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]    
Equity consideration received from disposition of assets 250 0
Purchase of mortgage servicing rights 7 12
Noncash Transaction, Sale of Forward Mortgage Servicing Rights 15 2
Equity consideration received from sale of business $ 0 $ 53
[1] The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed consolidated balance sheets.
September 30, 2022September 30, 2021
Cash and cash equivalents$530 $731 
Restricted cash148 118 
Restricted cash within assets of discontinued operations 65 
Total cash, cash equivalents, and restricted cash$678 $914 
v3.22.2.2
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2022
Sep. 30, 2021
Statement of Cash Flows [Abstract]    
Cash and cash equivalents $ 530 $ 731
Restricted cash 148 118
Restricted cash within assets of discontinued operations 0 65
Total cash, cash equivalents, and restricted cash [1] $ 678 $ 914
[1] The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed consolidated balance sheets.
September 30, 2022September 30, 2021
Cash and cash equivalents$530 $731 
Restricted cash148 118 
Restricted cash within assets of discontinued operations 65 
Total cash, cash equivalents, and restricted cash$678 $914 
v3.22.2.2
Nature of Business and Basis of Presentation
9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business and Basis of Presentation
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® and Xome®. Mr. Cooper is one of the largest home loan originators and servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. The Company’s corporate website is located at www.mrcoopergroup.com. 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, 2021.

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.

Share-based compensation for restricted stock units granted to employees of the Company, consultants, and non-employee directors is based on the fair market value of the Company’s common stock on the grant date and recognized as an expense over the requisite employee service period on a straight-line basis using an accelerated attribution model. Shares for these awards are issued to employees from treasury stock.

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. These investments are initially measured at cost and subsequently adjusted for Company’s proportionate share of earnings and losses in the investee. 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 due to factors such as adverse changes in the economy, macro-economic uncertainty, 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 borrowers and such differences could be material.

Reclassifications
Certain reclassifications have been made in the 2021 condensed consolidated statement of cash flows to conform to 2022 presentation. Such reclassifications were not material and did not affect total revenues or net income.
Recent Accounting Guidance AdoptedThe Company did not adopt any accounting guidance during the nine months ended September 30, 2022 that had a material impact on its condensed consolidated financial statements or disclosures.
v3.22.2.2
Discontinued Operations and Disposal Groups
9 Months Ended
Sep. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure
2. Dispositions

Sale of Mortgage Servicing Platform
On March 31, 2022, the Company completed the sale of certain assets and liabilities of its servicing and subservicing technology platform for performing and non-performing mortgage loans (the “Mortgage Servicing Platform”) to Sagent M&C, LLC (“Sagent”), in exchange for Class A-1 Common Units equal to 19.9% ownership of Sagent, and the sale of certain tangible personal property of the Company used in the conduct of the Mortgage Servicing Platform in exchange for $9.9 in cash, for total consideration of $260 (the “Sagent Transaction”). In connection with the Sagent Transaction, the Company recorded a gain of $223, which was included in “other income, net” within the condensed consolidated statements of operations, and recorded $4 transaction costs during the nine months ended September 30, 2022. No transaction costs were recorded in the three months ended September 30, 2022. The net carrying amount of assets and liabilities transferred in connection with the Sagent Transaction was $31 and reported under Corporate/Other.

The Company accounted for the equity interest under the equity method of accounting, as the Company has the ability to exercise significant influence over Sagent’s operating and financial decisions but does not own a majority equity interest or otherwise control the respective entity. Under the equity method of accounting, the investment is initially stated at cost and subsequently adjusted for additional investments and the Company’s proportionate share of Sagent’s earnings or losses and distributions. The initial cost of the equity interest recorded was $250, which represented the fair value as of March 31, 2022. The Company recorded a $5 loss during the three and nine months ended September 30, 2022 related to the Company's proportionate share of net loss of Sagent. The Company’s investment in Sagent was $245 as of September 30, 2022.

Sale of Reverse Servicing Portfolio
In 2021, the Company completed the sale of its reverse servicing portfolio, operating under Champion Mortgage brand (“Champion”), to Mortgage Assets Management, LLC and its affiliates (“MAM”) for total consideration of $1,640. Upon close of the transaction, MAM assumed Champion’s reverse portfolio and related operations. The Company recorded transaction costs of $5 during the nine months ended September 30, 2021. There were no transaction costs recorded for the three months ended September 30, 2021. The carrying amounts of assets and liabilities associated with the reverse servicing operation were reported under the Servicing segment. The sale of business represents a strategic shift in the Company’s operations. Therefore, the sale of the reverse servicing portfolio qualifies for reporting as discontinued operations, and the related results of operations are reported as discontinued operations in the condensed consolidated statements of operations for prior periods presented.

As part of the transaction, the Company entered into a transitional servicing agreement with MAM, under which the Company was compensated for continuing to subservice the reverse loans through the date that the loans were transferred out of Company’s servicing system. The transfer of the loans out of the Company’s servicing system was completed on April 1, 2022. In addition, the Company retained certain loans, primarily related to previously liquidated loans. As of September 30, 2022, the retained total assets and total liabilities were $38 and $27, respectively. As of December 31, 2021, the retained total assets and total liabilities were $55 and $39, respectively. The retained assets and liabilities are included in “other assets”, and “payables and other liabilities”, respectively, on the condensed consolidated balance sheets.
The following table sets forth the condensed consolidated statements of operations data for discontinued operations for the three and nine months ended September 30, 2021:
Three Months Ended September 30, 2021Nine Months Ended September 30, 2021
Revenue - service related, net$$13 
Salaries, wages and benefits expense(7)(23)
General and administrative expense(14)50 
Interest income31 118 
Interest expense(26)(90)
Loss on classification as discontinued operations(3)(64)
(Loss) income from discontinued operations before income tax (benefit) expense(15)
Less: Income tax (benefit) expense(4)
Net (loss) income from discontinued operations$(11)$
v3.22.2.2
Mortgage Servicing Rights and Related Liabilities
9 Months Ended
Sep. 30, 2022
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights and Related Liabilities
3. Mortgage Servicing Rights and Related Liabilities

The following table sets forth the carrying value of the Company’s mortgage servicing rights (“MSRs”) and the related liabilities. In estimating the fair value of all mortgage servicing rights and related liabilities, the impact of the current environment was considered in the determination of key assumptions.
MSRs and Related LiabilitiesSeptember 30, 2022December 31, 2021
MSRs - fair value$6,408 $4,223 
Excess spread financing - fair value$519 $768 
Mortgage servicing rights financing - fair value20 10 
MSR related liabilities - nonrecourse at fair value$539 $778 

Mortgage Servicing Rights
The following table sets forth the activities of MSRs:
Nine Months Ended September 30,
MSRs - Fair Value20222021
Fair value - beginning of period$4,223 $2,703 
Additions:
Servicing retained from mortgage loans sold481 790 
Purchases of servicing rights1,256 438 
Dispositions:
Sales of servicing assets(293)(13)
Changes in fair value:
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM)1,363 476 
Changes in valuation due to amortization(644)(772)
Other changes22 44 
Fair value - end of period$6,408 $3,666 

During the nine months ended September 30, 2022 and 2021, the Company sold $20,723 and $1,266 in unpaid principal balance (“UPB”) of MSRs, of which $19,692 and $1,144 were retained by the Company as subservicer, respectively.
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 primarily consist of government sponsored enterprises (“GSE”), such as the Federal National Mortgage Association (“Fannie Mae” or “FNMA”) and the Federal Home Loan Mortgage Corp (“Freddie Mac” or “FHLMC”), and the Government National Mortgage Association (“Ginnie Mae” or “GNMA”). 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:
September 30, 2022December 31, 2021
MSRs - UPB and Fair Value Breakdown by Investor PoolsUPBFair ValueUPBFair Value
Agency$363,637 $6,068 $302,851 $3,859 
Non-agency31,769 340 36,357 364 
Total$395,406 $6,408 $339,208 $4,223 

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:
Discount Rate
Total Prepayment Speeds
Cost to Service per Loan
MSRs - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
September 30, 2022
Mortgage servicing rights$(266)$(512)$(142)$(276)$(66)$(132)
December 31, 2021
Mortgage servicing rights$(141)$(272)$(148)$(286)$(46)$(93)

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 $519 and $768 as of September 30, 2022 and December 31, 2021, respectively. Refer to Note 13, Fair Value Measurements, for key weighted-average inputs and assumptions used in the valuation of excess spread financing liability. In June 2022, the Company entered into an assignment agreement with an investor to repurchase excess spread liabilities for a total purchase price of $277.

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:
Discount Rate
Prepayment Speeds
Excess Spread Financing - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
September 30, 2022
Excess spread financing$20 $41 $12 $24 
December 31, 2021
Excess spread financing$26 $54 $28 $58 
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 $20 and $10 as of September 30, 2022 and December 31, 2021, respectively. Refer to Note 13, Fair Value Measurements, for key weighted-average inputs and assumptions used in the valuation of the MSR financing liability.

Servicing Segment Revenues
The following table sets forth the items comprising total revenues for the Servicing segment:
Three Months Ended September 30,Nine Months Ended September 30,
Total Revenues - Servicing2022202120222021
Contractually specified servicing fees(1)
$371 $280 $1,076 $831 
Other service-related income(1)
 158 68 517 
Incentive and modification income(1)
5 10 23 38 
Late fees(1)
19 19 57 53 
Mark-to-market adjustments(2)
124 151 877 376 
Amortization, net of accretion(3)
(169)(202)(570)(567)
Other(4)
(18)(65)(88)(224)
Total revenues - Servicing$332 $351 $1,443 $1,024 

(1)The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues. Amounts also include servicing fees from loans sold with servicing retained of $172 and $488 for the three and nine months ended September 30, 2022 and $128 and $353 for three and nine months ended September 30, 2021, respectively.
(2)Mark-to-market (“MTM”) adjustments include fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM includes 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. The impact of negative modeled cash flows was $10 and $8 for the three months ended September 30, 2022 and 2021 and $22 and $28 for the nine months ended September 30, 2022 and 2021, respectively.
(3)Amortization is net of excess spread accretion of $14 and $59 during the three months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022 and 2021, amortization is net of excess spread accretion of $74 and $205, respectively.
(4)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.
v3.22.2.2
Advances and Other Receivables
9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Advances and Other Receivables
4. Advances and Other Receivables

Advances and other receivables, net, consists of the following:
Advances and Other Receivables, NetSeptember 30, 2022December 31, 2021
Servicing advances, net of $12 and $19 purchase discount, respectively
$854 $1,263 
Receivables from agencies, investors and prior servicers, net of $7 and $12 purchase discount, respectively
120 132 
Reserves(143)(167)
Total advances and other receivables, net$831 $1,228 
The following table sets forth the activities of the servicing reserves for advances and other receivables:
Three Months Ended September 30,Nine Months Ended September 30,
Reserves for Advances and Other Receivables2022202120222021
Balance - beginning of period$150 $191 $167 $208 
Provision and other additions(1)
19 18 53 59 
Write-offs(26)(37)(77)(95)
Balance - end of period$143 $172 $143 $172 

(1)The Company recorded a provision of $10 and $8 through the MTM adjustments in “revenues - service related, net”, in the condensed consolidated statements of operations during the three months ended September 30, 2022 and 2021, respectively, and $22 and $28 during the nine months ended September 30, 2022 and 2021, respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.

Purchase Discount for Advances and Other Receivables
The following tables set forth the activities of the purchase discounts for advances and other receivables:
Three Months Ended September 30,
20222021
Purchase Discount for Advances and Other ReceivablesServicing AdvancesReceivables from Agencies, Investors and Prior ServicersServicing AdvancesReceivables from Agencies, Investors and Prior Servicers
Balance - beginning of period$14 $8 $31 $20 
Utilization of purchase discounts(2)(1)(1)(7)
Balance - end of period$12 $7 $30 $13 

Nine Months Ended September 30,
20222021
Purchase Discount for Advances and Other ReceivablesServicing AdvancesReceivables from Agencies, Investors and Prior ServicersServicing AdvancesReceivables from Agencies, Investors and Prior Servicers
Balance - beginning of period$19 $12 $72 $21 
Utilization of purchase discounts(7)(5)(42)(8)
Balance - end of period$12 $7 $30 $13 

Credit Loss for Advances and Other Receivables
As of September 30, 2022, the total current expected credit loss (“CECL”) reserve was $34, of which $27 and $7 were recorded in reserves and purchase discount for advances and other receivables, respectively. There were no material changes to CECL reserves in 2022. As of September 30, 2021, the total CECL reserve was $29, of which $19 and $10 were recorded in reserves and purchase discount for advances and other receivables, respectively. There were no material changes to CECL reserves in 2021 except for a write-off of $16 in the three and nine months ended September 30, 2021.

The Company determined that the credit-related risk associated with applicable financial instruments typically increase 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.
v3.22.2.2
Mortgage Loans Held for Sale
9 Months Ended
Sep. 30, 2022
Mortgage Loans Held for Sale and Investment [Abstract]  
Mortgage Loans Held for Sale
5. Mortgage Loans Held for Sale

Mortgage loans held for sale are recorded at fair value as set forth below:
Mortgage Loans Held for SaleSeptember 30, 2022December 31, 2021
Mortgage loans held for sale – UPB$1,670 $4,257 
Mark-to-market adjustment(1)
(89)124 
Total mortgage loans held for sale$1,581 $4,381 

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

The following table sets forth the activities of mortgage loans held for sale:
Nine Months Ended September 30,
Mortgage Loans Held for Sale20222021
Balance - beginning of period$4,381 $5,720 
Loans sold(30,648)(73,822)
Mortgage loans originated and purchased, net of fees25,120 67,507 
Repurchase of loans out of Ginnie Mae securitizations2,904 8,530 
Net change in unrealized (loss) gain on retained loans held for sale(177)
Net transfers of mortgage loans held for sale(1)
1 
Balance - end of period$1,581 $7,939 

(1)Amount reflects 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.

During the nine months ended September 30, 2022, the Company received proceeds of $30,440 on the sale of mortgage loans held for sale, resulting in a loss of $562. During the nine months ended September 30, 2021, the Company received proceeds of $74,968 on the sale of mortgage loans held for sale, resulting in a gain of $1,146.

The total UPB and fair value of mortgage loans held for sale on non-accrual status was as follows:
September 30, 2022December 31, 2021
Mortgage Loans Held for SaleUPBFair ValueUPBFair Value
Non-accrual(1)
$108 $93 $104 $94 

(1)Non-accrual UPB includes $97 and $94 of UPB related to Ginnie Mae repurchased loans as of September 30, 2022 and December 31, 2021, respectively.

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $52 and $16 as of September 30, 2022 and December 31, 2021, respectively.
v3.22.2.2
Loans Subject to Repurchase from Ginnie Mae
9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Loans Subject to Repurchase from Ginnie Mae
6. Loans Subject to Repurchase from Ginnie Mae

Forward 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 borrowers 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 $1,575 and $1,496 as of September 30, 2022 and December 31, 2021, respectively, which are included in both “other assets” and “payables and other liabilities” in the condensed consolidated balance sheets. Loans subject to repurchase from Ginnie Mae as of September 30, 2022 and December 31, 2021 include $1,403 and $1,301 loans in forbearance related to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), respectively, whereby no payments have been received from borrowers for greater than 90 days.
v3.22.2.2
Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets 7. Goodwill and Intangible Assets The Company had goodwill of $120 as of September 30, 2022 and December 31, 2021, and intangible assets of $9 and $14 as of September 30, 2022 and December 31, 2021, respectively. Goodwill and intangible assets are included in “other assets” within the condensed consolidated balance sheets.
v3.22.2.2
Derivative Financial Instruments
9 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
8. Derivative Financial Instruments

Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates related to the Originations and Servicing segments. Derivative instruments utilized by the Company primarily include interest rate lock commitments (“IRLCs”), loan purchase commitments (“LPCs”), forward Mortgage Backed Securities (“MBS”) purchase commitments, Eurodollar and Treasury futures and interest rate swap futures. The changes in value on the derivative instruments associated with hedging loans held for sale fair value are recorded in earnings as a component of “net gain on mortgage loans held for sale” on the condensed consolidated statements of operations and condensed consolidated statement of cash flows, while changes in the value of derivative instruments associated with the MSR portfolio fair value are recorded in “service related, net” on the condensed consolidated statements of operations and in “loss 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.
September 30, 2022Nine Months Ended September 30, 2022
Derivative Financial InstrumentsExpiration
Dates
Outstanding
Notional
Fair
Value
Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2022$439 $(3)$(28)
Derivative financial instruments
IRLCs2022$1,118 $21 $(113)
LPCs202253 1 (2)
Forward MBS trades20222,296 74 542 
Treasury futures2022  4 
Total derivative financial instruments - assets$3,467 $96 $431 
Liabilities
Derivative financial instruments
IRLCs2022$551 $8 $(8)
LPCs2022223 5 (2)
Forward MBS trades2022458 19 (72)
Treasury futures2022806 62 (262)
Total derivative financial instruments - liabilities$2,038 $94 $(344)

September 30, 2021Nine Months Ended September 30, 2021
Derivative Financial InstrumentsExpiration
Dates
Outstanding
Notional
Fair
Value
Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2021$1,435 $29 $(73)
Derivative financial instruments
IRLCs2021$6,167 $167 $(247)
LPCs2021887 (33)
Forward MBS trades202112,770 61 240 
Swap futures2021— — 
Total derivative financial instruments - assets$19,824 $234 $(39)
Liabilities
Derivative financial instruments
IRLCs2021$25 $— $— 
LPCs20212,208 13 (12)
Forward MBS trades20216,553 23 (122)
Swap futures2021700 12 (18)
Total derivative financial instruments - liabilities$9,486 $48 $(152)
The Company held $23 and $27 in collateral deposits as of September 30, 2022 and December 31, 2021, respectively. Collateral deposits are recorded in “other assets” in the Company’s 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.
v3.22.2.2
Indebtedness
9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Indebtedness
9. Indebtedness

Advance and Warehouse Facilities
September 30, 2022December 31, 2021
Maturity DateCollateralCapacity AmountOutstandingCollateral PledgedOutstandingCollateral Pledged
Advance Facilities
$350 advance facilityOctober 2024Servicing advance receivables$350 $150 $182 $160 $197 
$350 advance facilityJanuary 2023Servicing advance receivables350 130 154 162 190 
$300 advance facility(1)
November 2024Servicing advance receivables300 206 290 234 318 
$75 advance facilityDecember 2022Servicing advance receivables75 46 48 58 89 
Advance facilities principal amount 532 674 614 794 
Warehouse Facilities
$1,500 warehouse facilityFebruary 2023Mortgage loans or MBS1,500 427 531 1,224 1,341 
$1,500 warehouse facilityJune 2023Mortgage loans or MBS1,500 328 341 356 345 
$1,000 warehouse facilityOctober 2023Mortgage loans or MBS1,000 235 244 991 1,024 
$750 warehouse facility(2)
October 2022Mortgage loans or MBS750 258 274 256 270 
$500 warehouse facility(3)
September 2024Mortgage loans or MBS500 144 157 409 425 
$500 warehouse facilityJune 2023Mortgage loans or MBS500 24 30 39 39 
$500 warehouse facilityAugust 2023Mortgage loans or MBS500 12 13 38 39 
$450 warehouse facilityApril 2023Mortgage loans or MBS450   87 89 
$300 warehouse facilityAugust 2023Mortgage loans or MBS300 55 58 419 430 
$250 warehouse facilityApril 2023Mortgage loans or MBS250   
$200 warehouse facilityJune 2023Mortgage loans or MBS200 5 8 188 194 
$200 warehouse facilityApril 2023Mortgage loans or MBS200 13 17 46 58 
$125 warehouse facilityDecember 2022Mortgage loans or MBS125 3 3 67 67 
$30 warehouse facility(4)
January 2022Mortgage loans or MBS   — — 
Warehouse facilities principal amount 1,504 1,676 4,125 4,327 
MSR Facilities
$900 warehouse facility(1)
November 2024MSR900260 2,028 2601,107 
$600 warehouse facilityApril 2023MSR600325911 — 838 
$500 warehouse facility(3)
September 2024MSR5001801,435745
$400 warehouse facility(5)
June 2024MSR400250705
$50 warehouse facilityNovember 2023MSR50257510124
MSR facilities principal amount 1,0405,1542702,814
Advance, warehouse and MSR facilities principal amount 3,076 $7,5045,009 $7,935 
Unamortized debt issuance costs(6)(12)
Advance and warehouse facilities, net$3,070$4,997

(1)Total capacity for this facility is $1,200, of which $300 is internally allocated for advance financing and $900 is internally allocated for MSR financing; capacity is fully fungible and is not restricted by these allocations. The capacity was increased in October 2022 to $1,400, with $300 internally allocated for advance financing and $1,100 internally allocated for MSR financing.
(2)This facility was terminated in October 2022.
(3)The capacity amount for this facility is $1,000, of which $500 is a sublimit for MSR financing.
(4)This facility was terminated in January 2022.
(5)The capacity was increased in October 2022 to $500.

The weighted average interest rate for advance facilities was 4.5% and 2.7% for the three months ended September 30, 2022 and 2021, and 3.4% and 2.9% for the nine months ended September 30, 2022 and 2021, respectively. The weighted average interest rate for warehouse and MSR facilities was 4.6% and 1.9% for three months ended September 30, 2022 and 2021, and 3.3% and 2.0% for the nine months ended September 30, 2022 and 2021, respectively.
Unsecured Senior Notes
Unsecured senior notes consist of the following:
Unsecured Senior NotesSeptember 30, 2022December 31, 2021
$850 face value, 5.500% interest rate payable semi-annually, due August 2028
$850 $850 
$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 
Unsecured senior notes principal amount2,700 2,700 
Unamortized debt issuance costs(27)(30)
Unsecured senior notes, net $2,673 $2,670 

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 nine months ended September 30, 2022 and 2021.

As of September 30, 2022, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
Year Ending December 31,Amount
2022 through 2026$ 
Thereafter2,700 
Total unsecured senior notes principal amount$2,700 

Interest Expense
Interest expense primarily includes interest incurred on advance and warehouse facilities, unsecured senior notes, excess spread financing and compensating bank balances, as well as bank fees. The Company incurred interest expense related to advance and warehouse facilities, unsecured senior notes and excess spread financing of $90 and $266 for the three and nine months ended September 30, 2022, respectively, and $95 and $278 for the three and nine months ended September 30, 2021, respectively.

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 the Company’s operating subsidiary, Nationstar Mortgage LLC. The Company was in compliance with its required financial covenants as of September 30, 2022.
v3.22.2.2
Securitizations and Financings
9 Months Ended
Sep. 30, 2022
Variable Interest Entities and Securitizations [Abstract]  
Securitizations and Financings
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:
September 30, 2022December 31, 2021
Consolidated Transactions with VIEsTransfers
Accounted for as
Secured
Borrowings
Transfers
Accounted for as
Secured
Borrowings
Assets
Restricted cash$62 $50 
Advances and other receivables, net336 387 
Total assets$398 $437 
Liabilities
Advance facilities, net(1)
$280 $322 
Payables and other liabilities1 
Total liabilities$281 $323 

(1)Refer to advance facilities in 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 TrustsSeptember 30, 2022December 31, 2021
Total collateral balances - UPB$1,002 $1,122 
Total certificate balances$975 $1,112 

The Company has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of September 30, 2022 and December 31, 2021. Therefore, it does not have a significant maximum 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 DueSeptember 30, 2022December 31, 2021
Unconsolidated securitization trusts$120 $138 
v3.22.2.2
Earnings Per Share
9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Earnings Per Share
11. Earnings Per Share

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Series A Preferred Stock is considered participating securities because it has dividend rights determined on an as-converted basis in the event of Company’s declaration of a dividend or distribution for common shares. In 2021, the Company repurchased a total of 14.8 million shares of its common stock from affiliates of Kohlberg Kravis Roberts & Co. L.P. (“KKR”), a related party of the Company. In addition, in August 2021, the Company repurchased 1.0 million shares of its preferred stock from affiliates of KKR. After giving effect to these transactions, KKR no longer held any equity interests in the Company.
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 September 30,Nine Months Ended September 30,
Computation of Earnings Per Share2022202120222021
Net income from continuing operations$113 $310 $922 $1,296 
Less: Undistributed earnings from continuing operations attributable to participating stockholders — 
Net income from continuing operations attributable to Mr. Cooper common stockholders$113 $281 $922 $1,259 
Net (loss) income from discontinued operations$ $(11)$ $
Less: Undistributed earnings from discontinued operations attributable to participating stockholders —  — 
Net (loss) income from discontinued operations attributable to Mr. Cooper common stockholders$ $(11)$ $
Net income$113 $299 $922 $1,299 
Less: Undistributed earnings attributable to participating stockholders  
Less: Premium on retirement of preferred stock 28  28 
Net income attributable to common stockholders$113 $270 $922 $1,262 
Earnings from continuing operations per common share attributable to Mr. Cooper:
Basic$1.59 $3.56 $12.71 $14.85 
Diluted$1.55 $3.42 $12.37 $14.20 
Earnings from discontinued operations per common share attributable to Mr. Cooper:
Basic$ $(0.14)$ $0.04 
Diluted$ $(0.13)$ $0.03 
Earnings per common share attributable to Mr. Cooper:
Basic$1.59 $3.42 $12.71 $14.89 
Diluted$1.55 $3.29 $12.37 $14.23 
Weighted average shares of common stock outstanding (in thousands):
Basic71,175 78,944 72,569 84,809 
Dilutive effect of stock awards1,703 2,826 1,988 3,176 
Dilutive effect of participating securities 301  658 
Diluted72,878 82,071 74,557 88,643 
v3.22.2.2
Income Taxes
9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
12. Income Taxes

For the three and nine months ended September 30, 2022, the effective tax rate for continuing operations was 26.4% and 24.7%, respectively, which differed from the statutory federal rate of 21% primarily due to state income taxes and nondeductible executive compensation. The effective tax rate increased during the three and nine months ended September 30, 2022 compared to the same period in 2021, primarily due to the impact of quarterly discrete tax items relative to the income before taxes for the respective periods, including the excess tax benefit from stock-based compensation and prior period tax credits.

For the three and nine months ended September 30, 2021, the effective tax rate for continuing operations was 25.0% and 24.0% which differed from the statutory federal rate of 21% primarily due to state income taxes and nondeductible executive compensation.
v3.22.2.2
Fair Value Measurements
9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements
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, 2021.

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:
 September 30, 2022
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$1,581 $ $1,581 $ 
Mortgage servicing rights6,408   6,408 
Equity investments48 3 — 45 
Derivative financial instruments
IRLCs21   21 
LPCs1   1 
Forward MBS trades74  74  
Liabilities
Derivative financial instruments
IRLCs8   8 
LPCs5   5 
Forward MBS trades19  19  
Treasury futures62  62  
Mortgage servicing rights financing20   20 
Excess spread financing519   519 
 December 31, 2021
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$4,381 $— $4,381 $— 
Mortgage servicing rights4,223 — — 4,223 
Equity investments63 — 54 
Derivative financial instruments
IRLCs134 — — 134 
Forward MBS trades— — 
LPCs— — 
Liabilities
Derivative financial instruments
Forward MBS trades— — 
LPCs— — 
Swap futures— — 
Mortgage servicing rights financing10 — — 10 
Excess spread financing768 — — 768 

The tables below present a reconciliation for all of the Company’s Level 3 assets and liabilities measured at fair value on a recurring basis:
Nine Months Ended September 30, 2022
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesMortgage servicing rightsEquity investmentsIRLCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$4,223 $54 $134 $768 $10 
Changes in fair value included in earnings719 (9)(113)124 10 
Purchases1,256     
Issuances481     
Sales(293)    
Repayments   (293) 
Settlements   (80) 
Other changes22     
Balance - end of period$6,408 $45 $21 $519 $20 

Nine Months Ended September 30, 2021
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesMortgage servicing rightsEquity investmentsIRLCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$2,703 $— $414 $934 $33 
Changes in fair value included in earnings(296)— (247)(13)
Purchases438 50 — — — 
Issuances790 — — — — 
Sales(13)— — — — 
Settlements— — — (118)— 
Other changes44 — — — — 
Balance - end of period$3,666 $50 $167 $822 $20 
No transfers were made in or out of Level 3 fair value assets and liabilities for the Company during the nine months ended September 30, 2022 and 2021.

The table below presents the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities.
September 30, 2022December 31, 2021
RangeWeighted AverageRangeWeighted Average
Level 3 InputsMinMaxMinMax
MSR(1)
Discount rate10.4 %13.7 %11.4 %9.5 %13.7 %10.9 %
Prepayment speed6.6 %13.3 %7.4 %11.7 %16.4 %13.0 %
Cost to service per loan(2)
$59 $128 $78 $59 $168 $77 
Average life(3)
8.0 years5.8 years
IRLCs
Value of servicing (reflected as a percentage of loan commitment)(0.3)%4.4 %2.1 %(0.7)%2.4 %1.4 %
Excess spread financing(1)
Discount rate10.0 %13.8 %11.3 %9.5 %13.8 %11.2 %
Prepayment speed6.6 %13.5 %9.5 %12.8 %15.2 %13.4 %
Average life(3)
6.6 years5.4 years
Mortgage servicing rights financing
Advance financing and counterparty fee rates5.0 %8.7 %7.3 %4.5 %7.9 %6.5 %
Annual advance recovery rates16.9 %22.9 %18.5 %19.2 %23.0 %21.3 %

(1)The inputs are weighted by investor.
(2)Presented in whole dollar amounts.
(3)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:
 September 30, 2022
 Carrying
Amount
Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$530 $530 $ $ 
Restricted cash148 148   
Advances and other receivables, net831   831 
Loans subject to repurchase from Ginnie Mae1,575  1,575  
Financial liabilities
Unsecured senior notes, net2,673 2,085   
Advance and warehouse facilities, net3,070  3,076  
Liability for loans subject to repurchase from Ginnie Mae1,575  1,575  
December 31, 2021
Carrying
Amount
Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$895 $895 $— $— 
Restricted cash146 146 — — 
Advances and other receivables, net1,228 — — 1,228 
Loans subject to repurchase from Ginnie Mae1,496 — 1,496 — 
Financial liabilities
Unsecured senior notes, net2,670 2,737 — — 
Advance and warehouse facilities, net4,997 — 5,009 — 
Liability for loans subject to repurchase from Ginnie Mae1,496 — 1,496 — 
v3.22.2.2
Capital Requirements
9 Months Ended
Sep. 30, 2022
Mortgage Banking [Abstract]  
Capital Requirements
14. Capital Requirements

Certain of the Company’s secondary market investors require 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 operating subsidiary, Nationstar Mortgage LLC. As of September 30, 2022, the Company was in compliance with its selling and servicing capital requirements.
v3.22.2.2
Commitments and Contingencies
9 Months Ended
Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
15. Commitments and Contingencies

Litigation and Regulatory
The Company and its subsidiaries are routinely and currently involved in a significant 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. The legal proceedings are at varying stages of adjudication, arbitration or investigation and are generally based on alleged violations of consumer protection, securities, employment, contract, tort, common law fraud and other numerous laws, including, without limitation, the Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Real Estate Settlement Procedures Act, National Housing Act, Homeowners Protection Act, Service Member’s Civil Relief Act, Telephone Consumer Protection Act, Truth in Lending Act, Financial Institutions Reform, Recovery, and Enforcement Act of 1989, unfair, deceptive or abusive acts or practices in violation of the Dodd-Frank Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Home Mortgage Disclosure Act, Title 11 of the United States Code (aka the “Bankruptcy Code”), False Claims Act and Making Home Affordable loan modification programs.

In addition, along with others in its industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, regarding alleged breaches of representations and warranties relating to the sale of mortgage loans, the placement of mortgage loans into securitization trusts or the servicing of mortgage loans securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of its various acquisitions. Certain of the pending or threatened legal proceedings include claims for substantial compensatory, punitive and/ or statutory damages or claims for an indeterminate amount of damages.
The Company operates within highly regulated industries on a federal, state and local level. In the normal and ordinary course of its business, the Company is routinely subject to extensive examinations, investigations, subpoenas, inquiries and reviews by various federal, state and local governmental, regulatory and enforcement agencies, including the Consumer Financial Protection Bureau, the Securities and Exchange Commission, the Department of Justice, the Office of the Special Inspector General for the Troubled Asset Relief Program, the U.S. Department of Housing and Urban Development, various State mortgage banking regulators and various State Attorneys General, related to the Company’s residential loan servicing and origination practices, its financial reporting and other aspects of its businesses. Any pending or potential future investigations, subpoenas, examinations or inquiries may lead to administrative, civil or criminal proceedings or settlements, and possibly result in remedies including fines, penalties, restitution, or alterations in the Company’s business practices, and additional expenses and collateral costs. The Company is cooperating fully in these matters. Responding to these matters requires the Company to devote substantial resources, resulting in higher costs and lower net cash flows. Adverse results in any of these matters could further increase the Company’s operating expenses and reduce its revenues, require it to change business practices and limit its ability to grow and otherwise materially and adversely affect its business, reputation, financial condition and results of operation.

The Company seeks to resolve all legal proceedings and other matters in the manner management believes is in the best interest of the Company and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. The Company has entered into agreements with a number of entities and regulatory agencies that toll applicable limitations periods with respect to their claims.

On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory and governmental proceedings utilizing the latest information available. Where available information indicates that it is probable a liability has been incurred, and the Company can reasonably estimate the amount of the loss, an accrued liability is established. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued.

As a legal matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is both probable and estimable. If, at the time of evaluation, the loss contingency is not both probable and reasonably estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and reasonably estimable. Once the matter is deemed to be both probable and reasonably estimable, the Company will establish an accrued liability and record a corresponding amount to legal-related expense. The Company will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. The Company recorded legal-related expenses, net of recoveries, which includes legal settlements and the fees paid to external legal service providers, of $7 and $15 for three and nine months ended September 30, 2022, respectively, and $10 and $31 for three and nine months ended September 30, 2021, respectively, which are included in “general and administrative expenses” on the unaudited condensed consolidated statements of operations.

For matters for which a loss is probable or reasonably possible in future periods, whether in excess of a related accrued liability or where there is no accrued liability, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material legal matters on an ongoing basis, in conjunction with any outside counsel handling the matter. Management currently believes the aggregate range of reasonably possible loss is $2 to $9 in excess of the accrued liability (if any) related to those matters as of September 30, 2022. 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. Those matters for which an estimate is not possible are not included within the estimated range. Therefore, this estimated range of possible loss represents what management believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum loss exposure and the Company cannot provide assurance that its litigations reserves will not need to be adjusted in the future. Thus, the Company’s exposure and ultimate losses may be higher, possibly significantly so, than the amounts accrued or this aggregate amount.    
In the Company’s experience, legal proceedings are inherently unpredictable. One or more of the following factors frequently contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis or, if permitted to proceed as a class action, how the class will be defined; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental investigations and inquiries, the possibility of fines and penalties); the matter presents meaningful legal uncertainties, including novel issues of law; the Company has not engaged in meaningful settlement discussions; discovery has not started or is not complete; there are significant facts in dispute; predicting possible outcomes depends on making assumptions about future decisions of courts or governmental or regulatory bodies or the behavior of other parties; and there are a large number of parties named as defendants (including where it is uncertain how damages or liability, if any, will be shared among multiple defendants). Generally, the less progress that has been made in the proceedings or the broader the range of potential results, the harder it is for the Company to estimate losses or ranges of losses that is reasonably possible the Company could incur.

Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability within payables and accrued liabilities, is appropriate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending, on among other things, the level of the Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s condensed consolidated financial statements.

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. The Company believes all balances sought from sellers recorded in “advances and other receivables, net” represent valid claims. However, the Company acknowledges that the claims process can be prolonged due to the required time to perfect claims at the loan level. Because of the required time to perfect or remediate these claims, management relies on the sufficiency of documentation supporting the claim, current negotiations with the counterparty and other evidence to evaluate whether a reserve is required for non-recoverable balances. In the absence of successful negotiations with the seller, all amounts claimed may not be recovered. Balances may be written-off and charged against earnings when management identifies amounts where recoverability from the seller is not likely. As of September 30, 2022, 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.

Loan and Other Commitments
The Company enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. 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.
v3.22.2.2
Segment Information
9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Information
16. Segment Information

The Company’s segments are based upon the Company’s organizational structure, which focuses primarily on the services offered. The Servicing segment performs operational activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans where appropriate to help borrowers stay current, and when necessary performing collections, foreclosures, and the sale of REO. 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. Corporate functional expenses are allocated to individual segments based on the actual cost of services performed, direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. 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 Company’s operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties.
On December 1, 2021, the Company completed the sale of its reverse servicing portfolio, operating under the Champion Mortgage brand, to MAM and its affiliates. The reverse servicing operation was previously reported in the Company’s Servicing segment. The reverse servicing operation is presented as discontinued operations in Company’s condensed financial statements for all periods presented and, as such, is not included in the continuing operations of the Servicing segment.

On March 31, 2022, the Company completed the sale of its Mortgage Servicing Platform to Sagent and recorded a gain of $223, which was included in “other income, net” within the condensed statements of operations and reported under Corporate/Other. Refer to Note 2, Dispositions for further details.

The following tables present financial information by segment:
 Three Months Ended September 30, 2022
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$353 $20 $22 $395 
Net (loss) gain on mortgage loans held for sale(21)136  115 
Total revenues332 156 22 510 
Total expenses147 112 57 316 
Interest income71 12  83 
Interest expense(53)(11)(40)(104)
Other expense, net  (20)(20)
Total other (expenses) income, net18 1 (60)(41)
Income (loss) from continuing operations before income tax expense (benefit)$203 $45 $(95)$153 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$6 $5 $(2)$9 
Total assets $9,703 $1,252 $1,860 $12,815 

Three Months Ended September 30, 2021
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$209 $44 $35 $288 
Net gain on mortgage loans held for sale142 430 — 572 
Total revenues351 474 35 860 
Total expenses128 208 66 402 
Interest income39 27 — 66 
Interest expense(65)(22)(31)(118)
Other income, net— — 
Total other (expenses) income, net(26)(23)(44)
Income (loss) from continuing operations before income tax expense (benefit)$197 $271 $(54)$414 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$11 $$(5)$14 
Total assets $14,560 $4,949 $2,152 $21,661 
Nine Months Ended September 30, 2022
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$1,468 $86 $56 $1,610 
Net (loss) gain on mortgage loans held for sale(25)576  551 
Total revenues1,443 662 56 2,161 
Total expenses413 412 157 982 
Interest income125 44  169 
Interest expense(168)(33)(120)(321)
Other income, net  197 197 
Total other (expenses) income, net(43)11 77 45 
Income (loss) from continuing operations before income tax expense$987 $261 $(24)$1,224 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$16 $14 $(1)$29 
Total assets $9,703 $1,252 $1,860 $12,815 

Nine Months Ended September 30, 2021
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$558 $132 $170 $860 
Net gain on mortgage loans held for sale466 1,367 — 1,833 
Total revenues1,024 1,499 170 2,693 
Total expenses359 665 257 1,281 
Interest income87 76 — 163 
Interest expense(201)(70)(92)(363)
Other income, net— — 494 494 
Total other (expenses) income, net(114)402 294 
Income from continuing operations before income tax expense$551 $840 $315 $1,706 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$23 $18 $$45 
Total assets $14,560 $4,949 $2,152 $21,661 
v3.22.2.2
Nature of Business and Basis of Presentation (Policies)
9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of presentation
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, 2021.
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
Share-based Payment Arrangement .Share-based compensation for restricted stock units granted to employees of the Company, consultants, and non-employee directors is based on the fair market value of the Company’s common stock on the grant date and recognized as an expense over the requisite employee service period on a straight-line basis using an accelerated attribution model. Shares for these awards are issued to employees from treasury stock.
Basis of consolidation Basis of ConsolidationThe 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. These investments are initially measured at cost and subsequently adjusted for Company’s proportionate share of earnings and losses in the investee. 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
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 due to factors such as adverse changes in the economy, macro-economic uncertainty, 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 borrowers and such differences could be material.
Reclassification
Reclassifications
Certain reclassifications have been made in the 2021 condensed consolidated statement of cash flows to conform to 2022 presentation. Such reclassifications were not material and did not affect total revenues or net income.
Recent accounting guidance adopted Recent Accounting Guidance AdoptedThe Company did not adopt any accounting guidance during the nine months ended September 30, 2022 that had a material impact on its condensed consolidated financial statements or disclosures.
v3.22.2.2
Discontinued Operations and Disposal Groups (Tables)
9 Months Ended
Sep. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
The following table sets forth the condensed consolidated statements of operations data for discontinued operations for the three and nine months ended September 30, 2021:
Three Months Ended September 30, 2021Nine Months Ended September 30, 2021
Revenue - service related, net$$13 
Salaries, wages and benefits expense(7)(23)
General and administrative expense(14)50 
Interest income31 118 
Interest expense(26)(90)
Loss on classification as discontinued operations(3)(64)
(Loss) income from discontinued operations before income tax (benefit) expense(15)
Less: Income tax (benefit) expense(4)
Net (loss) income from discontinued operations$(11)$
v3.22.2.2
Mortgage Servicing Rights and Related Liabilities (Tables)
9 Months Ended
Sep. 30, 2022
Transfers and Servicing [Abstract]  
Schedule of servicing assets at fair value
The following table sets forth the carrying value of the Company’s mortgage servicing rights (“MSRs”) and the related liabilities. In estimating the fair value of all mortgage servicing rights and related liabilities, the impact of the current environment was considered in the determination of key assumptions.
MSRs and Related LiabilitiesSeptember 30, 2022December 31, 2021
MSRs - fair value$6,408 $4,223 
Excess spread financing - fair value$519 $768 
Mortgage servicing rights financing - fair value20 10 
MSR related liabilities - nonrecourse at fair value$539 $778 
The following table sets forth the activities of MSRs:
Nine Months Ended September 30,
MSRs - Fair Value20222021
Fair value - beginning of period$4,223 $2,703 
Additions:
Servicing retained from mortgage loans sold481 790 
Purchases of servicing rights1,256 438 
Dispositions:
Sales of servicing assets(293)(13)
Changes in fair value:
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM)1,363 476 
Changes in valuation due to amortization(644)(772)
Other changes22 44 
Fair value - end of period$6,408 $3,666 
The following table provides a breakdown of UPB and fair value for the Company’s MSRs:
September 30, 2022December 31, 2021
MSRs - UPB and Fair Value Breakdown by Investor PoolsUPBFair ValueUPBFair Value
Agency$363,637 $6,068 $302,851 $3,859 
Non-agency31,769 340 36,357 364 
Total$395,406 $6,408 $339,208 $4,223 
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets
The following table shows the hypothetical effect on the fair value of the Company’s MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated:
Discount Rate
Total Prepayment Speeds
Cost to Service per Loan
MSRs - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
September 30, 2022
Mortgage servicing rights$(266)$(512)$(142)$(276)$(66)$(132)
December 31, 2021
Mortgage servicing rights$(141)$(272)$(148)$(286)$(46)$(93)
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:
Discount Rate
Prepayment Speeds
Excess Spread Financing - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
September 30, 2022
Excess spread financing$20 $41 $12 $24 
December 31, 2021
Excess spread financing$26 $54 $28 $58 
Schedule of fees earned in exchange for servicing financial assets
The following table sets forth the items comprising total revenues for the Servicing segment:
Three Months Ended September 30,Nine Months Ended September 30,
Total Revenues - Servicing2022202120222021
Contractually specified servicing fees(1)
$371 $280 $1,076 $831 
Other service-related income(1)
 158 68 517 
Incentive and modification income(1)
5 10 23 38 
Late fees(1)
19 19 57 53 
Mark-to-market adjustments(2)
124 151 877 376 
Amortization, net of accretion(3)
(169)(202)(570)(567)
Other(4)
(18)(65)(88)(224)
Total revenues - Servicing$332 $351 $1,443 $1,024 

(1)The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues. Amounts also include servicing fees from loans sold with servicing retained of $172 and $488 for the three and nine months ended September 30, 2022 and $128 and $353 for three and nine months ended September 30, 2021, respectively.
(2)Mark-to-market (“MTM”) adjustments include fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM includes 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. The impact of negative modeled cash flows was $10 and $8 for the three months ended September 30, 2022 and 2021 and $22 and $28 for the nine months ended September 30, 2022 and 2021, respectively.
(3)Amortization is net of excess spread accretion of $14 and $59 during the three months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022 and 2021, amortization is net of excess spread accretion of $74 and $205, respectively.
(4)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.
v3.22.2.2
Advances and Other Receivables (Tables)
9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Schedule of accounts receivable
Advances and other receivables, net, consists of the following:
Advances and Other Receivables, NetSeptember 30, 2022December 31, 2021
Servicing advances, net of $12 and $19 purchase discount, respectively
$854 $1,263 
Receivables from agencies, investors and prior servicers, net of $7 and $12 purchase discount, respectively
120 132 
Reserves(143)(167)
Total advances and other receivables, net$831 $1,228 
The following table sets forth the activities of the servicing reserves for advances and other receivables:
Three Months Ended September 30,Nine Months Ended September 30,
Reserves for Advances and Other Receivables2022202120222021
Balance - beginning of period$150 $191 $167 $208 
Provision and other additions(1)
19 18 53 59 
Write-offs(26)(37)(77)(95)
Balance - end of period$143 $172 $143 $172 

(1)The Company recorded a provision of $10 and $8 through the MTM adjustments in “revenues - service related, net”, in the condensed consolidated statements of operations during the three months ended September 30, 2022 and 2021, respectively, and $22 and $28 during the nine months ended September 30, 2022 and 2021, respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.
The following tables set forth the activities of the purchase discounts for advances and other receivables:
Three Months Ended September 30,
20222021
Purchase Discount for Advances and Other ReceivablesServicing AdvancesReceivables from Agencies, Investors and Prior ServicersServicing AdvancesReceivables from Agencies, Investors and Prior Servicers
Balance - beginning of period$14 $8 $31 $20 
Utilization of purchase discounts(2)(1)(1)(7)
Balance - end of period$12 $7 $30 $13 

Nine Months Ended September 30,
20222021
Purchase Discount for Advances and Other ReceivablesServicing AdvancesReceivables from Agencies, Investors and Prior ServicersServicing AdvancesReceivables from Agencies, Investors and Prior Servicers
Balance - beginning of period$19 $12 $72 $21 
Utilization of purchase discounts(7)(5)(42)(8)
Balance - end of period$12 $7 $30 $13 
v3.22.2.2
Mortgage Loans Held for Sale (Tables)
9 Months Ended
Sep. 30, 2022
Mortgage Loans Held for Sale and Investment [Abstract]  
Schedule of mortgage loans held-for-sale
Mortgage loans held for sale are recorded at fair value as set forth below:
Mortgage Loans Held for SaleSeptember 30, 2022December 31, 2021
Mortgage loans held for sale – UPB$1,670 $4,257 
Mark-to-market adjustment(1)
(89)124 
Total mortgage loans held for sale$1,581 $4,381 

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

The following table sets forth the activities of mortgage loans held for sale:
Nine Months Ended September 30,
Mortgage Loans Held for Sale20222021
Balance - beginning of period$4,381 $5,720 
Loans sold(30,648)(73,822)
Mortgage loans originated and purchased, net of fees25,120 67,507 
Repurchase of loans out of Ginnie Mae securitizations2,904 8,530 
Net change in unrealized (loss) gain on retained loans held for sale(177)
Net transfers of mortgage loans held for sale(1)
1 
Balance - end of period$1,581 $7,939 

(1)Amount reflects 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.
The total UPB and fair value of mortgage loans held for sale on non-accrual status was as follows:
September 30, 2022December 31, 2021
Mortgage Loans Held for SaleUPBFair ValueUPBFair Value
Non-accrual(1)
$108 $93 $104 $94 

(1)Non-accrual UPB includes $97 and $94 of UPB related to Ginnie Mae repurchased loans as of September 30, 2022 and December 31, 2021, respectively.
v3.22.2.2
Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative instruments
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.
September 30, 2022Nine Months Ended September 30, 2022
Derivative Financial InstrumentsExpiration
Dates
Outstanding
Notional
Fair
Value
Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2022$439 $(3)$(28)
Derivative financial instruments
IRLCs2022$1,118 $21 $(113)
LPCs202253 1 (2)
Forward MBS trades20222,296 74 542 
Treasury futures2022  4 
Total derivative financial instruments - assets$3,467 $96 $431 
Liabilities
Derivative financial instruments
IRLCs2022$551 $8 $(8)
LPCs2022223 5 (2)
Forward MBS trades2022458 19 (72)
Treasury futures2022806 62 (262)
Total derivative financial instruments - liabilities$2,038 $94 $(344)

September 30, 2021Nine Months Ended September 30, 2021
Derivative Financial InstrumentsExpiration
Dates
Outstanding
Notional
Fair
Value
Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2021$1,435 $29 $(73)
Derivative financial instruments
IRLCs2021$6,167 $167 $(247)
LPCs2021887 (33)
Forward MBS trades202112,770 61 240 
Swap futures2021— — 
Total derivative financial instruments - assets$19,824 $234 $(39)
Liabilities
Derivative financial instruments
IRLCs2021$25 $— $— 
LPCs20212,208 13 (12)
Forward MBS trades20216,553 23 (122)
Swap futures2021700 12 (18)
Total derivative financial instruments - liabilities$9,486 $48 $(152)
v3.22.2.2
Indebtedness (Tables)
9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of unsecured senior notes
Unsecured senior notes consist of the following:
Unsecured Senior NotesSeptember 30, 2022December 31, 2021
$850 face value, 5.500% interest rate payable semi-annually, due August 2028
$850 $850 
$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 
Unsecured senior notes principal amount2,700 2,700 
Unamortized debt issuance costs(27)(30)
Unsecured senior notes, net $2,673 $2,670 
Schedule of maturities of long-term debt
As of September 30, 2022, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
Year Ending December 31,Amount
2022 through 2026$ 
Thereafter2,700 
Total unsecured senior notes principal amount$2,700 
v3.22.2.2
Securitizations and Financings (Tables)
9 Months Ended
Sep. 30, 2022
Variable Interest Entities and Securitizations [Abstract]  
Schedule of assets and liabilities of VIEs included in financial statements
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:
September 30, 2022December 31, 2021
Consolidated Transactions with VIEsTransfers
Accounted for as
Secured
Borrowings
Transfers
Accounted for as
Secured
Borrowings
Assets
Restricted cash$62 $50 
Advances and other receivables, net336 387 
Total assets$398 $437 
Liabilities
Advance facilities, net(1)
$280 $322 
Payables and other liabilities1 
Total liabilities$281 $323 

(1)Refer to advance facilities in 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 TrustsSeptember 30, 2022December 31, 2021
Total collateral balances - UPB$1,002 $1,122 
Total certificate balances$975 $1,112 
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 DueSeptember 30, 2022December 31, 2021
Unconsolidated securitization trusts$120 $138 
v3.22.2.2
Earnings Per Share (Tables)
9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Schedule of earnings per share
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 September 30,Nine Months Ended September 30,
Computation of Earnings Per Share2022202120222021
Net income from continuing operations$113 $310 $922 $1,296 
Less: Undistributed earnings from continuing operations attributable to participating stockholders — 
Net income from continuing operations attributable to Mr. Cooper common stockholders$113 $281 $922 $1,259 
Net (loss) income from discontinued operations$ $(11)$ $
Less: Undistributed earnings from discontinued operations attributable to participating stockholders —  — 
Net (loss) income from discontinued operations attributable to Mr. Cooper common stockholders$ $(11)$ $
Net income$113 $299 $922 $1,299 
Less: Undistributed earnings attributable to participating stockholders  
Less: Premium on retirement of preferred stock 28  28 
Net income attributable to common stockholders$113 $270 $922 $1,262 
Earnings from continuing operations per common share attributable to Mr. Cooper:
Basic$1.59 $3.56 $12.71 $14.85 
Diluted$1.55 $3.42 $12.37 $14.20 
Earnings from discontinued operations per common share attributable to Mr. Cooper:
Basic$ $(0.14)$ $0.04 
Diluted$ $(0.13)$ $0.03 
Earnings per common share attributable to Mr. Cooper:
Basic$1.59 $3.42 $12.71 $14.89 
Diluted$1.55 $3.29 $12.37 $14.23 
Weighted average shares of common stock outstanding (in thousands):
Basic71,175 78,944 72,569 84,809 
Dilutive effect of stock awards1,703 2,826 1,988 3,176 
Dilutive effect of participating securities 301  658 
Diluted72,878 82,071 74,557 88,643 
v3.22.2.2
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule of fair value, assets and liabilities measured on recurring basis
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:
 September 30, 2022
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$1,581 $ $1,581 $ 
Mortgage servicing rights6,408   6,408 
Equity investments48 3 — 45 
Derivative financial instruments
IRLCs21   21 
LPCs1   1 
Forward MBS trades74  74  
Liabilities
Derivative financial instruments
IRLCs8   8 
LPCs5   5 
Forward MBS trades19  19  
Treasury futures62  62  
Mortgage servicing rights financing20   20 
Excess spread financing519   519 
 December 31, 2021
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$4,381 $— $4,381 $— 
Mortgage servicing rights4,223 — — 4,223 
Equity investments63 — 54 
Derivative financial instruments
IRLCs134 — — 134 
Forward MBS trades— — 
LPCs— — 
Liabilities
Derivative financial instruments
Forward MBS trades— — 
LPCs— — 
Swap futures— — 
Mortgage servicing rights financing10 — — 10 
Excess spread financing768 — — 768 
Schedule of fair value, assets and liabilities measured on recurring basis, unobservable input reconciliation
The tables below present a reconciliation for all of the Company’s Level 3 assets and liabilities measured at fair value on a recurring basis:
Nine Months Ended September 30, 2022
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesMortgage servicing rightsEquity investmentsIRLCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$4,223 $54 $134 $768 $10 
Changes in fair value included in earnings719 (9)(113)124 10 
Purchases1,256     
Issuances481     
Sales(293)    
Repayments   (293) 
Settlements   (80) 
Other changes22     
Balance - end of period$6,408 $45 $21 $519 $20 

Nine Months Ended September 30, 2021
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesMortgage servicing rightsEquity investmentsIRLCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$2,703 $— $414 $934 $33 
Changes in fair value included in earnings(296)— (247)(13)
Purchases438 50 — — — 
Issuances790 — — — — 
Sales(13)— — — — 
Settlements— — — (118)— 
Other changes44 — — — — 
Balance - end of period$3,666 $50 $167 $822 $20 
Fair value measurement inputs and valuation techniques
The table below presents the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities.
September 30, 2022December 31, 2021
RangeWeighted AverageRangeWeighted Average
Level 3 InputsMinMaxMinMax
MSR(1)
Discount rate10.4 %13.7 %11.4 %9.5 %13.7 %10.9 %
Prepayment speed6.6 %13.3 %7.4 %11.7 %16.4 %13.0 %
Cost to service per loan(2)
$59 $128 $78 $59 $168 $77 
Average life(3)
8.0 years5.8 years
IRLCs
Value of servicing (reflected as a percentage of loan commitment)(0.3)%4.4 %2.1 %(0.7)%2.4 %1.4 %
Excess spread financing(1)
Discount rate10.0 %13.8 %11.3 %9.5 %13.8 %11.2 %
Prepayment speed6.6 %13.5 %9.5 %12.8 %15.2 %13.4 %
Average life(3)
6.6 years5.4 years
Mortgage servicing rights financing
Advance financing and counterparty fee rates5.0 %8.7 %7.3 %4.5 %7.9 %6.5 %
Annual advance recovery rates16.9 %22.9 %18.5 %19.2 %23.0 %21.3 %

(1)The inputs are weighted by investor.
(2)Presented in whole dollar amounts.
(3)Average life is included for informational purposes.
Schedule of fair value, by balance sheet grouping
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:
 September 30, 2022
 Carrying
Amount
Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$530 $530 $ $ 
Restricted cash148 148   
Advances and other receivables, net831   831 
Loans subject to repurchase from Ginnie Mae1,575  1,575  
Financial liabilities
Unsecured senior notes, net2,673 2,085   
Advance and warehouse facilities, net3,070  3,076  
Liability for loans subject to repurchase from Ginnie Mae1,575  1,575  
December 31, 2021
Carrying
Amount
Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$895 $895 $— $— 
Restricted cash146 146 — — 
Advances and other receivables, net1,228 — — 1,228 
Loans subject to repurchase from Ginnie Mae1,496 — 1,496 — 
Financial liabilities
Unsecured senior notes, net2,670 2,737 — — 
Advance and warehouse facilities, net4,997 — 5,009 — 
Liability for loans subject to repurchase from Ginnie Mae1,496 — 1,496 — 
v3.22.2.2
Segment Information (Tables)
9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Schedule of segment reporting information
The following tables present financial information by segment:
 Three Months Ended September 30, 2022
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$353 $20 $22 $395 
Net (loss) gain on mortgage loans held for sale(21)136  115 
Total revenues332 156 22 510 
Total expenses147 112 57 316 
Interest income71 12  83 
Interest expense(53)(11)(40)(104)
Other expense, net  (20)(20)
Total other (expenses) income, net18 1 (60)(41)
Income (loss) from continuing operations before income tax expense (benefit)$203 $45 $(95)$153 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$6 $5 $(2)$9 
Total assets $9,703 $1,252 $1,860 $12,815 

Three Months Ended September 30, 2021
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$209 $44 $35 $288 
Net gain on mortgage loans held for sale142 430 — 572 
Total revenues351 474 35 860 
Total expenses128 208 66 402 
Interest income39 27 — 66 
Interest expense(65)(22)(31)(118)
Other income, net— — 
Total other (expenses) income, net(26)(23)(44)
Income (loss) from continuing operations before income tax expense (benefit)$197 $271 $(54)$414 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$11 $$(5)$14 
Total assets $14,560 $4,949 $2,152 $21,661 
Nine Months Ended September 30, 2022
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$1,468 $86 $56 $1,610 
Net (loss) gain on mortgage loans held for sale(25)576  551 
Total revenues1,443 662 56 2,161 
Total expenses413 412 157 982 
Interest income125 44  169 
Interest expense(168)(33)(120)(321)
Other income, net  197 197 
Total other (expenses) income, net(43)11 77 45 
Income (loss) from continuing operations before income tax expense$987 $261 $(24)$1,224 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$16 $14 $(1)$29 
Total assets $9,703 $1,252 $1,860 $12,815 

Nine Months Ended September 30, 2021
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$558 $132 $170 $860 
Net gain on mortgage loans held for sale466 1,367 — 1,833 
Total revenues1,024 1,499 170 2,693 
Total expenses359 665 257 1,281 
Interest income87 76 — 163 
Interest expense(201)(70)(92)(363)
Other income, net— — 494 494 
Total other (expenses) income, net(114)402 294 
Income from continuing operations before income tax expense$551 $840 $315 $1,706 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$23 $18 $$45 
Total assets $14,560 $4,949 $2,152 $21,661 
v3.22.2.2
Discontinued Operations and Disposal Groups (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Dec. 01, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Net (loss) income from discontinued operations $ 0.0 $ (11.0) $ 0.0 $ 3.0        
Discontinued Operation, Loan Asset Retained 38.0   38.0       $ 55.0  
Discontinued Operation, Loan Liability Retained 27.0   27.0       $ 39.0  
Sagent M&C, LLC                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Income (Loss) from Equity Method Investments (5.0)   5.0          
Equity Method Investments 245.0   245.0     $ 250.0    
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Champion Mortgage [Member]                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Revenue - service related, net   4.0   13.0        
Salaries, wages and benefits expense   (7.0)   (23.0)        
General and administrative expense   (14.0)   50.0        
Interest income   31.0   118.0        
Interest expense   (26.0)   (90.0)        
Loss on classification as discontinued operations   (3.0)   (64.0)        
(Loss) income from discontinued operations before income tax (benefit) expense   (15.0)   4.0        
Less: Income tax (benefit) expense   (4.0)   1.0        
Net (loss) income from discontinued operations   (11.0)   $ 3.0        
Disposal Group, Discontinued Operation, Transaction Cost   $ 0.0 5.0          
Purchase price               $ 1,640.0
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Servicing Platform                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Disposal Group, Discontinued Operation, Transaction Cost $ 0.0   4.0          
Purchase price           260.0    
Disposal Group, Including Discontinued Operation, Assets, Noncurrent         $ 31.0      
Cash received from disposal           $ 9.9    
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal     $ 223.0          
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Servicing Platform | Sagent M&C, LLC | Mr. Cooper Group Inc.                
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                
Ownership interest percentage           19.90%    
v3.22.2.2
Mortgage Servicing Rights and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Mortgage Servicing Rights [Line Items]    
Excess spread financing - fair value $ 519 $ 768
Mortgage servicing rights financing - fair value 20 10
MSR related liabilities - nonrecourse at fair value 539 778
Mortgage servicing rights    
Mortgage Servicing Rights [Line Items]    
MSRs - fair value $ 6,408 $ 4,223
v3.22.2.2
Mortgage Servicing Rights and Related Liabilities - MSR's at Fair Value (Details) - Mortgage servicing rights - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Servicing Asset at Fair Value, Amount [Roll Forward]    
Fair value - beginning of period $ 4,223 $ 2,703
Servicing retained from mortgage loans sold 481 790
Purchases of servicing rights 1,256 438
Sales of servicing assets (293) (13)
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) 1,363 476
Changes in valuation due to amortization (644) (772)
Other changes 22 44
Fair value - end of period $ 6,408 $ 3,666
v3.22.2.2
Mortgage Servicing Rights and Related Liabilities - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Servicing Asset at Amortized Cost [Line Items]        
Excess spread financing - fair value $ 519   $ 768  
Mortgage servicing rights financing - fair value 20   $ 10  
Excess Spread Financing Repurchase, Purchase Price   $ 277    
Forward MSRs Sold        
Servicing Asset at Amortized Cost [Line Items]        
UPB 20,723     $ 1,266
Forward MSRs Sold, Subservicing Retained        
Servicing Asset at Amortized Cost [Line Items]        
UPB $ 19,692     $ 1,144
v3.22.2.2
Mortgage Servicing Rights and Related Liabilities - UPB related to owned MSRs (Details) - Mortgage servicing rights - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Owned Service Loans [Line Items]    
UPB $ 395,406 $ 339,208
Fair Value 6,408 4,223
Agency    
Owned Service Loans [Line Items]    
UPB 363,637 302,851
Fair Value 6,068 3,859
Non-agency    
Owned Service Loans [Line Items]    
UPB 31,769 36,357
Fair Value $ 340 $ 364
v3.22.2.2
Mortgage Servicing Rights and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Mortgage servicing rights    
Excess Spread Financing - Hypothetical Sensitivities    
Total prepayment speeds, 10% Adverse Change $ (142) $ (148)
Total prepayment speeds, 20% Adverse Change (276) (286)
Cost to Service per Loan, 10% Adverse Change (66) (46)
Cost to Service per Loan, 20% Adverse Change (132) (93)
Excess spread financing    
Excess Spread Financing - Hypothetical Sensitivities    
Total prepayment speeds, 10% Adverse Change 12 28
Total prepayment speeds, 20% Adverse Change 24 58
100 bps Adverse Change | Mortgage servicing rights    
Excess Spread Financing - Hypothetical Sensitivities    
Discount Rate (266) (141)
100 bps Adverse Change | Excess spread financing    
Excess Spread Financing - Hypothetical Sensitivities    
Discount Rate 20 26
200 bps Adverse Change | Mortgage servicing rights    
Excess Spread Financing - Hypothetical Sensitivities    
Discount Rate (512) (272)
200 bps Adverse Change | Excess spread financing    
Excess Spread Financing - Hypothetical Sensitivities    
Discount Rate $ 41 $ 54
v3.22.2.2
Mortgage Servicing Rights and Related Liabilities - Servicing Revenue (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Transfers and Servicing [Abstract]        
Contractually specified servicing fees(1) $ 371 $ 280 $ 1,076 $ 831
Other service-related income(1) 0 158 68 517
Incentive and modification income(1) 5 10 23 38
Late fees(1) 19 19 57 53
Mark-to-market adjustments(2) 124 151 877 376
Amortization, net of accretion(3) (169) (202) (570) (567)
Other(4) (18) (65) (88) (224)
Total revenues - Servicing 332 351 1,443 1,024
Cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans 10 8 22 28
Servicing fee income accretion expense 14 59 74 205
Cash Flows Between Transferor and Transferee, Servicing Fees $ 172 $ 128 $ 488 $ 353
v3.22.2.2
Advances and Other Receivables - Schedule of Accounts Receivable (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Receivables [Abstract]            
Servicing advances, net of $12 and $19 purchase discount, respectively $ 854   $ 1,263      
Receivables from agencies, investors and prior servicers, net of $7 and $12 purchase discount, respectively 120   132      
Reserves (143)   (167)      
Total advances and other receivables, net 831   1,228      
Servicing advances discount 12 $ 14 19 $ 30 $ 31 $ 72
Receivables discount $ 7 $ 8 $ 12 $ 13 $ 20 $ 21
v3.22.2.2
Advances and Other Receivables - Advances and Other Receivables Roll Forward (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Advances And Other Receivables, Reserves [Roll Forward]        
Balance - beginning of period $ 150 $ 191 $ 167 $ 208
Provision and other additions(1) 19 18 53 59
Write-offs (26) (37) (77) (95)
Balance - end of period 143 172 143 172
Cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans $ 10 $ 8 $ 22 $ 28
v3.22.2.2
Advances and Other Receivables - Purchase Discount (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Servicing Advances        
Servicing Advances, Discount $ 14 $ 31 $ 19 $ 72
Accretion of Service Advances Discount (2) (1) (7) (42)
Servicing Advances, Discount 12 30 12 30
Receivables from Agencies, Investors and Prior Servicers        
Receivable with Imputed Interest, Discount 7 13 7 13
Receivable Discount, Accretion Expense (1) (7) (5) (8)
Receivable with Imputed Interest, Discount $ 8 $ 20 $ 12 $ 21
v3.22.2.2
Advances and Other Receivables - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Financing receivable, allowance for credit loss $ 29 $ 34 $ 29
Financial instruments collection period   39 months  
Advances and other receivables reserve      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Other Credit Losses, Write-off (16)   (16)
Financing receivable, allowance for credit loss 19 $ 27 19
Purchase Discount      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Financing receivable, allowance for credit loss $ 10 $ 7 $ 10
v3.22.2.2
Mortgage Loans Held for Sale - Mortgage Loans Held for Sale (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Mortgage loans held for sale – UPB $ 1,670 $ 4,257
Mark-to-market adjustment(1) (89) 124
Total mortgage loans held for sale 1,581 4,381
Mortgage Loans Held for Sale, Nonaccrual Basis Unpaid Principal Balance 108 104
Fair Value, Mortgage Loans Held for Sale non-accrual status 93 94
Ginnie mae repurchased loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Mortgage Loans Held for Sale, Nonaccrual Basis Unpaid Principal Balance $ 97 $ 94
v3.22.2.2
Mortgage Loans Held for Sale - Reconciliation to Cash Flow (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]    
Balance - beginning of period $ 4,381 $ 5,720
Loans sold (30,648) (73,822)
Mortgage loans originated and purchased, net of fees 25,120 67,507
Repurchase of loans out of Ginnie Mae securitizations 2,904 8,530
Net change in unrealized (loss) gain on retained loans held for sale (177) 1
Net transfers of mortgage loans held for sale(1) 1 3
Balance - end of period $ 1,581 $ 7,939
v3.22.2.2
Mortgage Loans Held for Sale - Narrative (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Mortgage Loans Held for Sale and Investment [Abstract]      
Sale of mortgage loans held for sale $ 30,440 $ 74,968  
Gain (Loss) on Sale of Mortgage Loans (562) $ 1,146  
Mortgage loans held for sale in foreclosure $ 52   $ 16
v3.22.2.2
Loans Subject to Repurchase from Ginnie Mae (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans subject to repurchase from Ginnie Mae $ 1,575 $ 1,496
Financial Asset, Equal to or Greater than 90 Days Past Due | Payment Deferral    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans subject to repurchase from Ginnie Mae $ 1,403 $ 1,301
v3.22.2.2
Goodwill and Intangible Assets (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 120 $ 120
Intangible assets $ 9 $ 14
v3.22.2.2
Derivative Financial Instruments - Derivative Instruments (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Treasury futures    
Derivatives, Fair Value [Line Items]    
Fair Value $ (62)  
Assets    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 3,467 $ 19,824
Fair Value 96 234
Gains/(Losses) 431 (39)
Assets | Loan sale commitments    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 439 1,435
Fair Value   29
Fair Value (3)  
Gains/(Losses) (28) (73)
Assets | IRLCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 1,118 6,167
Fair Value 21 167
Gains/(Losses) (113) (247)
Assets | LPCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 53 887
Fair Value 1 6
Gains/(Losses) (2) (33)
Assets | Forward MBS trades    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 2,296 12,770
Fair Value 74 61
Gains/(Losses) 542 240
Assets | Swap futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional   0
Fair Value   0
Gains/(Losses)   1
Assets | Treasury futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 0  
Fair Value 0  
Gains/(Losses) 4  
Liabilities    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 2,038 9,486
Fair Value (94) (48)
Gains/(Losses) (344) (152)
Liabilities | IRLCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 551 25
Fair Value (8) 0
Gains/(Losses) (8) 0
Liabilities | LPCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 223 2,208
Fair Value (5) (13)
Gains/(Losses) (2) (12)
Liabilities | Forward MBS trades    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 458 6,553
Fair Value (19) (23)
Gains/(Losses) (72) (122)
Liabilities | Swap futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional   700
Fair Value   (12)
Gains/(Losses)   $ (18)
Liabilities | Treasury futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 806  
Gains/(Losses) $ (262)  
v3.22.2.2
Derivative Financial Instruments - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Other assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Collateral deposit assets (liabilities) $ (23) $ (27)
v3.22.2.2
Indebtedness - Advance and Warehouse Facilities Summary (Details) - USD ($)
Oct. 01, 2022
Sep. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]      
Advance and warehouse facilities, net   $ 3,070,000,000 $ 4,997,000,000
Advance Facilities | Servicing | Loans payable | $350 advance facility      
Debt Instrument [Line Items]      
Capacity Amount   350,000,000  
Debt outstanding, gross   150,000,000 160,000,000
Collateral Pledged   182,000,000 197,000,000
Advance Facilities | Servicing | Loans payable | $350 advance facility      
Debt Instrument [Line Items]      
Capacity Amount   350,000,000  
Debt outstanding, gross   130,000,000 162,000,000
Collateral Pledged   154,000,000 190,000,000
Advance Facilities | Servicing | Notes payable to banks      
Debt Instrument [Line Items]      
Debt outstanding, gross   532,000,000 614,000,000
Collateral Pledged   674,000,000 794,000,000
Advance Facilities | Servicing | Notes payable to banks | $75 advance facility      
Debt Instrument [Line Items]      
Capacity Amount   75,000,000  
Debt outstanding, gross   46,000,000 58,000,000
Collateral Pledged   48,000,000 89,000,000
Warehouse Facilities | Originations | Notes payable to banks      
Debt Instrument [Line Items]      
Debt outstanding, gross   1,504,000,000 4,125,000,000
Collateral Pledged   1,676,000,000 4,327,000,000
Warehouse Facilities | Originations | Notes payable to banks | $1,500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   1,500,000,000  
Debt outstanding, gross   427,000,000 1,224,000,000
Collateral Pledged   531,000,000 1,341,000,000
Warehouse Facilities | Originations | Notes payable to banks | $1,500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   1,500,000,000  
Debt outstanding, gross   328,000,000 356,000,000
Collateral Pledged   341,000,000 345,000,000
Warehouse Facilities | Originations | Notes payable to banks | $1,000 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   1,000,000,000  
Debt outstanding, gross   235,000,000 991,000,000
Collateral Pledged   244,000,000 1,024,000,000
Warehouse Facilities | Originations | Notes payable to banks | $750 warehouse facility(2)      
Debt Instrument [Line Items]      
Capacity Amount   750,000,000  
Debt outstanding, gross   258,000,000 256,000,000
Collateral Pledged   274,000,000 270,000,000
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility(3)      
Debt Instrument [Line Items]      
Capacity Amount   500,000,000  
Debt outstanding, gross   144,000,000 409,000,000
Collateral Pledged   157,000,000 425,000,000
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   500,000,000  
Debt outstanding, gross   24,000,000 39,000,000
Collateral Pledged   30,000,000 39,000,000
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   500,000,000  
Debt outstanding, gross   12,000,000 38,000,000
Collateral Pledged   13,000,000 39,000,000
Warehouse Facilities | Originations | Notes payable to banks | $450 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   450,000,000  
Debt outstanding, gross   0 87,000,000
Collateral Pledged   0 89,000,000
Warehouse Facilities | Originations | Notes payable to banks | $300 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   300,000,000  
Debt outstanding, gross   55,000,000 419,000,000
Collateral Pledged   58,000,000 430,000,000
Warehouse Facilities | Originations | Notes payable to banks | $250 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   250,000,000  
Debt outstanding, gross   0 5,000,000
Collateral Pledged   0 6,000,000
Warehouse Facilities | Originations | Notes payable to banks | $200 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   200,000,000  
Debt outstanding, gross   5,000,000 188,000,000
Collateral Pledged   8,000,000 194,000,000
Warehouse Facilities | Originations | Notes payable to banks | $200 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   200,000,000  
Debt outstanding, gross   13,000,000 46,000,000
Collateral Pledged   17,000,000 58,000,000
Warehouse Facilities | Originations | Notes payable to banks | $125 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   125,000,000  
Debt outstanding, gross   3,000,000 67,000,000
Collateral Pledged   3,000,000 67,000,000
Warehouse Facilities | Originations | Notes payable to banks | $30 warehouse facility(4)      
Debt Instrument [Line Items]      
Capacity Amount   0  
Debt outstanding, gross   0 0
Collateral Pledged   0 0
Warehouse Facilities | Originations | Notes payable to banks | $1,000 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   1,000,000,000  
MSR Facilities | Servicing | Notes payable to banks      
Debt Instrument [Line Items]      
Debt outstanding, gross   1,040,000,000 270,000,000
Collateral Pledged   5,154,000,000 2,814,000,000
MSR Facilities | Servicing | Notes payable to banks | $900 warehouse facility(1)      
Debt Instrument [Line Items]      
Capacity Amount   900,000,000  
Debt outstanding, gross   260,000,000 260,000,000
Collateral Pledged   2,028,000,000 1,107,000,000
MSR Facilities | Servicing | Notes payable to banks | $600 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   600,000,000  
Debt outstanding, gross   325,000,000 0
Collateral Pledged   911,000,000 838,000,000
MSR Facilities | Servicing | Notes payable to banks | $500 warehouse facility(3)      
Debt Instrument [Line Items]      
Capacity Amount   500,000,000  
Debt outstanding, gross   180,000,000 0
Collateral Pledged   1,435,000,000 745,000,000
MSR Facilities | Servicing | Notes payable to banks | $400 warehouse facility(5)      
Debt Instrument [Line Items]      
Capacity Amount   400,000,000  
Debt outstanding, gross   250,000,000 0
Collateral Pledged   705,000,000 0
MSR Facilities | Servicing | Notes payable to banks | $50 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   50,000,000  
Debt outstanding, gross   25,000,000 10,000,000
Collateral Pledged   75,000,000 124,000,000
MSR Facilities | Servicing | Notes payable to banks | $1,200 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   1,200,000,000  
MSR Facilities | Servicing | Notes payable to banks | $1,200 warehouse facility | Subsequent Event      
Debt Instrument [Line Items]      
Capacity Amount $ 1,400,000,000    
Advance Financing, Internally Allocated | Servicing | Loans payable | $300 advance facility(1)      
Debt Instrument [Line Items]      
Capacity Amount   300,000,000  
Debt outstanding, gross   206,000,000 234,000,000
Collateral Pledged   290,000,000 318,000,000
Advance Financing, Internally Allocated | Servicing | Loans payable | $300 advance facility(1) | Subsequent Event      
Debt Instrument [Line Items]      
Capacity Amount 300,000,000    
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $900 warehouse facility(1)      
Debt Instrument [Line Items]      
Capacity Amount   900,000,000  
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $900 warehouse facility(1) | Subsequent Event      
Debt Instrument [Line Items]      
Capacity Amount 1,100,000,000    
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $500 warehouse facility(3)      
Debt Instrument [Line Items]      
Capacity Amount   500,000,000  
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $400 warehouse facility(5) | Subsequent Event      
Debt Instrument [Line Items]      
Capacity Amount $ 500,000,000    
Advance, Warehouse and MSR Facilities      
Debt Instrument [Line Items]      
Debt outstanding, gross   3,076,000,000 5,009,000,000
Collateral Pledged   7,504,000,000 7,935,000,000
Unamortized debt issuance costs   (6,000,000) (12,000,000)
Advance and warehouse facilities, net   $ 3,070,000,000 $ 4,997,000,000
v3.22.2.2
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($)
Sep. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Unsecured senior notes, net $ 2,673,000,000 $ 2,670,000,000
Unsecured Senior Notes    
Debt Instrument [Line Items]    
Unsecured senior notes principal amount 2,700,000,000 2,700,000,000
Unamortized debt issuance costs (27,000,000) (30,000,000)
Unsecured senior notes, net 2,673,000,000 2,670,000,000
Unsecured Senior Notes | $850 face value, 5.500% interest rate payable semi-annually, due August 2028    
Debt Instrument [Line Items]    
Unsecured senior notes principal amount 850,000,000 850,000,000
Face value $ 850,000,000  
Debt Instrument, Interest Rate, Stated Percentage 5.50%  
Unsecured Senior Notes | $650 face value, 5.125% interest rate payable semi-annually, due December 2030    
Debt Instrument [Line Items]    
Unsecured senior notes principal amount $ 650,000,000 650,000,000
Face value $ 650,000,000  
Debt Instrument, Interest Rate, Stated Percentage 5.125%  
Unsecured Senior Notes | $600 face value, 6.000% interest rate payable semi-annually, due January 2027    
Debt Instrument [Line Items]    
Unsecured senior notes principal amount $ 600,000,000 600,000,000
Face value $ 600,000,000  
Debt Instrument, Interest Rate, Stated Percentage 6.00%  
Unsecured Senior Notes | $600 face value, 5.750% interest rate payable semi-annually, due November 2031    
Debt Instrument [Line Items]    
Unsecured senior notes principal amount $ 600,000,000 $ 600,000,000
Face value $ 600,000,000  
Debt Instrument, Interest Rate, Stated Percentage 5.75%  
v3.22.2.2
Indebtedness - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Debt Instrument [Line Items]        
Interest Expense $ 104 $ 118 $ 321 $ 363
Advance Facilities | Servicing        
Debt Instrument [Line Items]        
Short-Term Debt, Weighted Average Interest Rate, over Time 4.50% 2.70% 3.40% 2.90%
Warehouse & MSR Facilities        
Debt Instrument [Line Items]        
Short-Term Debt, Weighted Average Interest Rate, over Time 4.60% 1.90% 3.30% 2.00%
Debt        
Debt Instrument [Line Items]        
Interest Expense $ 90 $ 95 $ 266 $ 278
Unsecured Senior Notes        
Debt Instrument [Line Items]        
Maximum percentage redeemable on unsecured debt     40.00%  
Repayments of debt     $ 0 0
Amount of principal amount outstanding repaid     $ 0 $ 0
v3.22.2.2
Indebtedness - Schedule of Notes Maturity (Details) - Unsecured Senior Notes - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
2022 through 2026 $ 0  
Thereafter 2,700  
Total unsecured senior notes principal amount $ 2,700 $ 2,700
v3.22.2.2
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) - Residential mortgage - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets - transfers accounted for as secured borrowings $ 398 $ 437
Liabilities - transfers accounted for as secured borrowings 281 323
Restricted cash    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets - transfers accounted for as secured borrowings 62 50
Advances and other receivables, net    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets - transfers accounted for as secured borrowings 336 387
Advance facilities, net(1)    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities - transfers accounted for as secured borrowings 280 322
Payables and other liabilities    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities - transfers accounted for as secured borrowings $ 1 $ 1
v3.22.2.2
Securitizations and Financings - Securitization Trusts (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Variable Interest Entities and Securitizations [Abstract]    
Total collateral balances - UPB $ 1,002 $ 1,122
Total certificate balances 975 1,112
Financial Asset, Past Due    
Financing Receivable, Past Due [Line Items]    
Unconsolidated securitization trusts $ 120 $ 138
v3.22.2.2
Earnings Per Share - Narrative (Details) - shares
shares in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Common Stock            
Stock Repurchased and Retired [Line Items]            
Repurchase of common stock (in shares) 1,136   11,073 4,118 15,578 (14,800)
Preferred Stock            
Stock Repurchased and Retired [Line Items]            
Stock Repurchased and Retired During Period, Shares   1,000 (1,000)   1,000  
v3.22.2.2
Earnings Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Earnings Per Share [Abstract]        
Net income from continuing operations $ 113 $ 310 $ 922 $ 1,296
Less: Undistributed earnings from continuing operations attributable to participating stockholders 0 1 0 9
Net income from continuing operations attributable to Mr. Cooper common stockholders 113 281 922 1,259
Net (loss) income from discontinued operations 0 (11) 0 3
Less: Undistributed earnings from discontinued operations attributable to participating stockholders 0 0 0 0
Net (loss) income from discontinued operations attributable to Mr. Cooper common stockholders 0 (11) 0 3
Net income 113 299 922 1,299
Less: Undistributed earnings attributable to participating stockholders 0 1 0 9
Net income attributable to common stockholders $ 113 $ 270 $ 922 $ 1,262
Earnings Per Share, Basic [Abstract]        
Income (Loss) from Continuing Operations, Per Basic Share $ 1.59 $ 3.56 $ 12.71 $ 14.85
Income (Loss) from Continuing Operations, Per Diluted Share 1.55 3.42 12.37 14.20
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share 0 (0.14) 0 0.04
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share 0 (0.13) 0 0.03
Basic (in dollars per share) 1.59 3.42 12.71 14.89
Diluted (in dollars per share) $ 1.55 $ 3.29 $ 12.37 $ 14.23
Weighted average shares of common stock outstanding (in thousands):        
Basic 71,175 78,944 72,569 84,809
Dilutive effect of stock awards 1,703 2,826 1,988 3,176
Dilutive effect of participating securities 0 301 0 658
Diluted 72,878 82,071 74,557 88,643
v3.22.2.2
Income Taxes (Details)
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Tax Disclosure [Abstract]        
Effective tax rate 26.40% 25.00% 24.70% 24.00%
v3.22.2.2
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Assets    
Mortgage loans held for sale $ 1,581 $ 4,381
Liabilities    
Mortgage servicing rights financing 20 10
Treasury futures    
Assets    
Fair Value 62  
Recurring Fair Value Measurements    
Assets    
Mortgage loans held for sale 1,581 4,381
Mortgage servicing rights 6,408 4,223
Equity investments 48 63
Liabilities    
Mortgage servicing rights financing 20 10
Excess spread financing 519 768
Recurring Fair Value Measurements | IRLCs    
Assets    
Fair Value 21 134
Fair Value 8  
Recurring Fair Value Measurements | LPCs    
Assets    
Fair Value 1 3
Fair Value 5 2
Recurring Fair Value Measurements | Forward MBS trades    
Assets    
Fair Value 74 7
Fair Value 19 8
Recurring Fair Value Measurements | Swap futures    
Assets    
Fair Value   6
Recurring Fair Value Measurements | Level 1    
Assets    
Mortgage loans held for sale 0 0
Mortgage servicing rights 0 0
Equity investments 3 9
Liabilities    
Mortgage servicing rights financing 0 0
Excess spread financing 0 0
Recurring Fair Value Measurements | Level 1 | IRLCs    
Assets    
Fair Value 0 0
Fair Value 0  
Recurring Fair Value Measurements | Level 1 | LPCs    
Assets    
Fair Value 0 0
Fair Value 0 0
Recurring Fair Value Measurements | Level 1 | Forward MBS trades    
Assets    
Fair Value 0 0
Fair Value 0 0
Recurring Fair Value Measurements | Level 1 | Swap futures    
Assets    
Fair Value   0
Recurring Fair Value Measurements | Level 1 | Treasury futures    
Assets    
Fair Value 0  
Recurring Fair Value Measurements | Level 2    
Assets    
Mortgage loans held for sale 1,581 4,381
Mortgage servicing rights 0 0
Equity investments 0 0
Liabilities    
Mortgage servicing rights financing 0 0
Excess spread financing 0 0
Recurring Fair Value Measurements | Level 2 | IRLCs    
Assets    
Fair Value 0 0
Fair Value 0  
Recurring Fair Value Measurements | Level 2 | LPCs    
Assets    
Fair Value 0 0
Fair Value 0 0
Recurring Fair Value Measurements | Level 2 | Forward MBS trades    
Assets    
Fair Value 74 7
Fair Value 19 8
Recurring Fair Value Measurements | Level 2 | Swap futures    
Assets    
Fair Value   6
Recurring Fair Value Measurements | Level 2 | Treasury futures    
Assets    
Fair Value 62  
Recurring Fair Value Measurements | Level 3    
Assets    
Mortgage loans held for sale 0 0
Mortgage servicing rights 6,408 4,223
Equity investments 45 54
Liabilities    
Mortgage servicing rights financing 20 10
Excess spread financing 519 768
Recurring Fair Value Measurements | Level 3 | IRLCs    
Assets    
Fair Value 21 134
Fair Value 8  
Recurring Fair Value Measurements | Level 3 | LPCs    
Assets    
Fair Value 1 3
Fair Value 5 2
Recurring Fair Value Measurements | Level 3 | Forward MBS trades    
Assets    
Fair Value 0 0
Fair Value 0 0
Recurring Fair Value Measurements | Level 3 | Swap futures    
Assets    
Fair Value   $ 0
Recurring Fair Value Measurements | Level 3 | Treasury futures    
Assets    
Fair Value $ 0  
v3.22.2.2
Fair Value Measurements - Level 3 Reconciliation (Details) - Recurring Fair Value Measurements - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Excess spread financing    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period $ 768 $ 934
Changes in fair value included in earnings 124 6
Purchases 0 0
Issuances 0 0
Sales 0 0
Repayments 293  
Settlements (80) (118)
Other changes 0 0
Balance - end of period 519 822
Mortgage servicing rights financing    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 10 33
Changes in fair value included in earnings 10 (13)
Purchases 0 0
Issuances 0 0
Sales 0 0
Repayments 0  
Settlements 0 0
Other changes 0 0
Balance - end of period 20 20
Mortgage servicing rights    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 4,223 2,703
Changes in fair value included in earnings 719 (296)
Purchases 1,256 438
Issuances 481 790
Sales (293) (13)
Repayments 0  
Settlements 0 0
Other changes 22 44
Balance - end of period 6,408 3,666
Equity investments    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 54 0
Changes in fair value included in earnings (9) 0
Purchases 0 50
Issuances 0 0
Sales 0 0
Repayments 0  
Settlements 0 0
Other changes 0 0
Balance - end of period 45 50
IRLCs    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 134 414
Changes in fair value included in earnings (113) (247)
Purchases 0 0
Issuances 0 0
Sales 0 0
Repayments 0  
Settlements 0 0
Other changes 0 0
Balance - end of period $ 21 $ 167
v3.22.2.2
Fair Value Measurements - Unobservable Inputs (Details) - USD ($)
9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
MSR(1)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Average life(3) 8 years 5 years 9 months 18 days
Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Average life(3) 6 years 7 months 6 days 5 years 4 months 24 days
Min | MSR(1)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 10.40% 9.50%
Prepayment speed 6.60% 11.70%
Cost to service per loan(2) $ 59 $ 59
Min | IRLCs    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Value of servicing (reflected as a percentage of loan commitment) (0.003) (0.007)
Min | Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 10.00% 9.50%
Prepayment speed 6.60% 12.80%
Min | Mortgage servicing rights financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Advance financing and counterparty fee rates 5.00% 4.50%
Annual advance recovery rates 16.90% 19.20%
Max | MSR(1)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 13.70% 13.70%
Prepayment speed 13.30% 16.40%
Cost to service per loan(2) $ 128 $ 168
Max | IRLCs    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Value of servicing (reflected as a percentage of loan commitment) 0.044 0.024
Max | Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 13.80% 13.80%
Prepayment speed 13.50% 15.20%
Max | Mortgage servicing rights financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Advance financing and counterparty fee rates 8.70% 7.90%
Annual advance recovery rates 22.90% 23.00%
Weighted Average | MSR(1)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 11.40% 10.90%
Prepayment speed 7.40% 13.00%
Cost to service per loan(2) $ 78 $ 77
Weighted Average | IRLCs    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Value of servicing (reflected as a percentage of loan commitment) 0.021 0.014
Weighted Average | Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 11.30% 11.20%
Prepayment speed 9.50% 13.40%
Weighted Average | Mortgage servicing rights financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Advance financing and counterparty fee rates 7.30% 6.50%
Annual advance recovery rates 18.50% 21.30%
v3.22.2.2
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Financial assets      
Restricted cash $ 148 $ 146 $ 118
Loans subject to repurchase from Ginnie Mae 1,575 1,496  
Financial liabilities      
Unsecured senior notes, net 2,673 2,670  
Advance and warehouse facilities, net 3,070 4,997  
Nonrecurring Fair Value Measurements      
Financial assets      
Cash and cash equivalents 530 895  
Restricted cash 148 146  
Advances and other receivables, net 831 1,228  
Loans subject to repurchase from Ginnie Mae 1,575 1,496  
Financial liabilities      
Unsecured senior notes, net 2,673 2,670  
Advance and warehouse facilities, net 3,070 4,997  
Liability for loans subject to repurchase from Ginnie Mae 1,575 1,496  
Nonrecurring Fair Value Measurements | Level 1      
Financial assets      
Cash and cash equivalents 530 895  
Restricted cash 148 146  
Advances and other receivables, net 0 0  
Loans subject to repurchase from Ginnie Mae 0 0  
Financial liabilities      
Unsecured senior notes, net 2,085 2,737  
Advance and warehouse facilities, net 0 0  
Liability for loans subject to repurchase from Ginnie Mae 0 0  
Nonrecurring Fair Value Measurements | Level 2      
Financial assets      
Cash and cash equivalents 0 0  
Restricted cash 0 0  
Advances and other receivables, net 0 0  
Loans subject to repurchase from Ginnie Mae 1,575 1,496  
Financial liabilities      
Unsecured senior notes, net 0 0  
Advance and warehouse facilities, net 3,076 5,009  
Liability for loans subject to repurchase from Ginnie Mae 1,575 1,496  
Nonrecurring Fair Value Measurements | Level 3      
Financial assets      
Cash and cash equivalents 0 0  
Restricted cash 0 0  
Advances and other receivables, net 831 1,228  
Loans subject to repurchase from Ginnie Mae 0 0  
Financial liabilities      
Unsecured senior notes, net 0 0  
Advance and warehouse facilities, net 0 0  
Liability for loans subject to repurchase from Ginnie Mae $ 0 $ 0  
v3.22.2.2
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Loss Contingencies [Line Items]        
Legal Fees (Recoveries), net $ 7 $ 10 $ 15 $ 31
Litigation and regulatory matters | Min        
Loss Contingencies [Line Items]        
Estimate of possible loss 2   2  
Litigation and regulatory matters | Max        
Loss Contingencies [Line Items]        
Estimate of possible loss $ 9   $ 9  
v3.22.2.2
Segment Information - Financial Information (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Revenues:          
Service related, net $ 395 $ 288 $ 1,610 $ 860  
Net (loss) gain on mortgage loans held for sale 115 572 551 1,833  
Total revenues 510 860 2,161 2,693  
Total expenses 316 402 982 1,281  
Other income (expenses)          
Interest income 83 66 169 163  
Interest expense (104) (118) (321) (363)  
Other expense, net (20) 8 197 494  
Total other (expenses) income, net (41) (44) 45 294  
Income from continuing operations before income tax expense 153 414 1,224 1,706  
Depreciation and amortization for property and equipment and intangible assets from continuing operations 9 14 29 45  
Total assets 12,815 21,661 12,815 21,661 $ 14,204
Gain (Loss) on Disposition of Assets     (223)    
Operating Segments | Servicing          
Revenues:          
Service related, net 353 209 1,468 558  
Net (loss) gain on mortgage loans held for sale (21) 142 (25) 466  
Total revenues 332 351 1,443 1,024  
Total expenses 147 128 413 359  
Other income (expenses)          
Interest income 71 39 125 87  
Interest expense (53) (65) (168) (201)  
Other expense, net 0 0 0 0  
Total other (expenses) income, net 18 (26) (43) (114)  
Income from continuing operations before income tax expense 203 197 987 551  
Depreciation and amortization for property and equipment and intangible assets from continuing operations 6 11 16 23  
Total assets 9,703 14,560 9,703 14,560  
Operating Segments | Originations          
Revenues:          
Service related, net 20 44 86 132  
Net (loss) gain on mortgage loans held for sale 136 430 576 1,367  
Total revenues 156 474 662 1,499  
Total expenses 112 208 412 665  
Other income (expenses)          
Interest income 12 27 44 76  
Interest expense (11) (22) (33) (70)  
Other expense, net 0 0 0 0  
Total other (expenses) income, net 1 5 11 6  
Income from continuing operations before income tax expense 45 271 261 840  
Depreciation and amortization for property and equipment and intangible assets from continuing operations 5 8 14 18  
Total assets 1,252 4,949 1,252 4,949  
Corporate/Other          
Revenues:          
Service related, net 22 35 56 170  
Net (loss) gain on mortgage loans held for sale 0 0 0 0  
Total revenues 22 35 56 170  
Total expenses 57 66 157 257  
Other income (expenses)          
Interest income 0 0 0 0  
Interest expense (40) (31) (120) (92)  
Other expense, net (20) 8 197 494  
Total other (expenses) income, net (60) (23) 77 402  
Income from continuing operations before income tax expense (95) (54) (24) 315  
Depreciation and amortization for property and equipment and intangible assets from continuing operations (2) (5) (1) 4  
Total assets $ 1,860 $ 2,152 $ 1,860 $ 2,152