Mortgage Origination PerformanceMortgage origination operating income of $47M came in just below estimates and at the lower end of the company’s range, and well below the $69M reported in the previous quarter.
Regulatory ConcernsThe market is currently pricing in some level of skepticism regarding the deal’s eventual closing, possibly due to concerns from regulatory entities about RKT/COOP’s combined market dominance.
Valuation DowngradeDowngrading COOP shares to Market Perform from Market Outperform as the shares are now reasonably fairly valued with limited price appreciation potential after the announcement of the acquisition.