Mr. Cooper’s Jay Bray explores servicing book growth, tech enhancements for 2025

In this week’s episode of the Power House podcast, Mr. Cooper CEO Jay Bray joins HousingWire president Diego Sanchez for a conversation centered on balanced servicing and origination activities in the mortgage space.

The duo explore Mr. Cooper’s growth initiatives, artificial intelligence (AI) usage for revenue growth and the future of the mortgage business. The conversation also dives into long-term customer relationships, potential bans on trigger leads and bettering the customer experience with technology. 

This conversation has been edited for length and clarity. To start, Bray explores Mr. Cooper’s successes in third-quarter 2024 and its unique approach to growth.

Bray: Ultimately, we’re trying to build a balanced business model, right? And so, we’ve been a servicing-centric company for a few decades. We care for our customers; we can retain them via our direct consumer origination platform and help them on their homeownership journey.

Sanchez: There’s been a bill running around Congress to ban trigger leads. If that bill passes, what will the impact be on your business?

Bray: We don’t use trigger leads as a primary way to connect with our customers. We have many touch points where we’re helping customers. So, I think it’ll be a positive for us.

Sanchez transitions the conversation to explore Mr. Cooper’s recent acquisition of Flagstar Bank assets.

Sanchez: Is the $1.2 trillion-plus (in unpaid principal balance) at the end of Q3 after you acquired Flagstar’s mortgage operations, or will Flagstar’s book be added to that total?

Bray: Flagstar’s book will be added to that. It will be over $1.5 trillion in service to over 6 million customers. We were acquiring MSRs. We also took over a subservicing business and brought over team members. Not many companies can provide a holistic solution to sellers of servicing, subservicing, TPO business, etc. We call it “perfect the platform”.

Sanchez: A few months ago, it seemed like we might have a little bit of a mini refi boom in 2025. But mortgage rates have gone up since the Fed started cutting interest rates. Where do you see rates going in 2025?

Bray: Right now, rates are going to be higher for longer. If you look at the transition that we’re going through, we don’t see — in the near term, at least — any catalyst for rates going lower in a meaningful way. I think our view is we need to be ready for it. We have additional capacity that we’re carrying in our origination business.

To close the conversation, Sanchez and Bray discuss the use of AI and technology in the future of mortgage servicing. 

Sanchez: Your CIO, Sridhar Sharma, mentioned how AI and other technology are enabling Mr. Cooper to grow revenue without necessarily growing head count. What else is AI unlocking for Mr. Cooper?

Bray: We have the Pyro tool that ingests MSR documents, regardless of acquisition size, in 24 to 48 hours. Agent Assist for customer service and QC tools are also areas we are focused on. But I think, ultimately, this still is a people business, right? The way I look at it, these tools enhance the experience.