2022-01-22 09:47:57 COOP Mr. Cooper
01/22/22 01/2209:47 01/22/2209:47 | Mr. Cooper Group stock looking like a buy, Barron's saysIf rates keep rising as the Federal Reserve tightens monetary policy, housing stocks will struggle as home loans grow less affordable. The outlook doesn't look great for mortgage originators either, with volumes likely to fall, Daren Fonda writes in this week's edition of Barron's. But one mortgage company could be a winner: Mr. Cooper Group, the author contends. The company, rebranded from Nationstar Mortgage in 2017, originates loans like other housing lenders. But about half its revenue comes from servicing-processing payments, handling escrows, and dealing with loan issues, he adds. Cooper earns a higher percentage of its revenue from servicing than any other major mortgage company. And the business gains value in a rising-rate climate-boosting the asset on Cooper's balance sheet, Fonda argues. Reference Link |
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