As of December 31, 2018, Nationstar Mortgage LLC and Nationstar Capital Corporation⁽¹⁾(collectively, the “Issuer”), both wholly-owned subsidiaries of the Company, have issued a 6.500% unsecured senior notes due July 2021 with an outstanding aggregate principal amount of $592 and a 6.500% unsecured senior notes due June 2022 with outstanding aggregate principal amount of $206 (collectively, the “unsecured senior notes”). The unsecured senior notes are unconditionally guaranteed, jointly and severally, by all of Nationstar Mortgage LLC’s existing and future domestic subsidiaries other than its securitization and certain finance subsidiaries, certain other restricted subsidiaries, excluded restricted subsidiaries and subsidiaries that in the future Nationstar Mortgage LLC designates as unrestricted subsidiaries. All guarantor subsidiaries are 100% owned by Nationstar Mortgage LLC. The Company and its three direct wholly-owned subsidiaries are guarantors of the unsecured senior notes as well. Presented below are the condensed consolidating financial statements of the Company, Nationstar Mortgage LLC and the guarantor subsidiaries for the years indicated.

In the condensed consolidating financial statements presented below, the Company allocates income tax expense to Nationstar Mortgage LLC as if it were a separate tax payer entity pursuant to ASC 740, Income Taxes.

⁽¹⁾Nationstar Capital Corporation has no assets, operations or liabilities other than being a co-obligor of the unsecured senior notes.

MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018

	Successor
	Mr. Cooper		Issuer⁽¹⁾		Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	193	$	1	$	48		$	—		$	242
Restricted cash	—		186		—		133			—			319
Mortgage servicing rights	—		3,644		—		32			—			3,676
Advances and other receivables, net	—		1,194		—		—			—			1,194
Reverse mortgage interests, net	—		6,770		—		1,164			—			7,934
Mortgage loans held for sale at fair value	—		1,631		—		—			—			1,631
Mortgage loans held for investment, net	—		1		—		118			—			119
Property and equipment, net	—		84		—		12			—			96
Deferred tax asset, net	973		—		—		(6		)	—			967
Other assets	—		660		202		621			(688		)	795
Investment in subsidiaries	2,820		601		—		—			(3,421		)	—
Total assets	$	3,793	$	14,964	$	203	$	2,122		$	(4,109	)	$	16,973

Liabilities and Stockholders’ Equity
Unsecured senior notes, net	$	1,660	$	799	$	—	$	—		$	—		$	2,459
Advance facilities, net	—		90		—		505			—			595
Warehouse facilities, net	—		2,349		—		—			—			2,349
Payables and accrued liabilities	49		1,413		1		80						1,543
MSR related liabilities - nonrecourse at fair value	—		1,197		—		19			—			1,216
Mortgage servicing liabilities	—		71		—		—			—			71
Other nonrecourse debt, net	—		5,676		—		1,119			—			6,795
Payables to affiliates	139		549		—		—			(688		)	—
Total liabilities	1,848		12,144		1		1,723			(688		)	15,028
Total stockholders’ equity	1,945		2,820		202		399			(3,421		)	1,945
Total liabilities and stockholders’ equity	$	3,793	$	14,964	$	203	$	2,122		$	(4,109	)	$	16,973


⁽¹⁾	Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018

	Successor
	Mr. Cooper			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations		Consolidated
Revenues:
Service related, net	$	—		$	233		$	9	$	176		$	—	$	418
Net gain on mortgage loans held for sale	—			175			—		1			—		176
Total revenues	—			408			9		177			—		594
Expenses:
Salaries, wages benefits	1			258			2		76			—		337
General and administrative	—			262			1		107			—		370
Total expenses	1			520			3		183			—		707
Other income (expenses):
Interest income	—			237			—		19			—		256
Interest expense	(64		)	(211		)	—		(18		)	—		(293		)
Other income (expenses)	1			11			—		1			—		13
Gain (loss) from subsidiaries	(44		)	2			—		—			42		—
Total other income (expenses), net	(107		)	39			—		2			42		(24		)
(Loss) income before income tax expense	(108		)	(73		)	6		(4		)	42		(137		)
Less: Income tax benefit	(992		)	(29		)	—		—			—		(1,021		)
Net income (loss)	884			(44		)	6		(4		)	42		884
Less: Net income attributable to non-controlling interests	—			—			—		—			—		—
Net income (loss) attributable to Mr. Cooper	$	884		$	(44	)	$	6	$	(4	)	$	42	$	884


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE PERIOD JANUARY 1 TO JULY 31, 2018

	Predecessor
	Nationstar		Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Revenues:
Service related, net	$	—	$	732		$	16	$	153		$	—		$	901
Net gain on mortgage loans held for sale	—		295			—		—			—			295
Total revenues	—		1,027			16		153			—			1,196
Expenses:
Salaries, wages benefits	—		359			3		64			—			426
General and administrative	27		427			1		64			—			519
Total expenses	27		786			4		128			—			945
Other income (expenses):
Interest income	—		299			—		34			—			333
Interest expense	—		(364		)	—		(24		)	—			(388		)
Other income (expenses)	—		(3		)	—		9			—			6
Gain (loss) from subsidiaries	181		56			—		—			(237		)	—
Total other income (expenses), net	181		(12		)	—		19			(237		)	(49		)
Income (loss) before income tax expense	154		229			12		44			(237		)	202
Less: Income tax expense	—		48			—		—			—			48
Net income (loss)	154		181			12		44			(237		)	154
Less: Net income attributable to non-controlling interests	—		—			—		—			—			—
Net income (loss) attributable to Nationstar	$	154	$	181		$	12	$	44		$	(237	)	$	154


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018

	Successor
	Mr. Cooper			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)			Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Operating Activities
Net income (loss) attributable to Successor	$	884		$	(44	)	$	6		$	(4	)	$	42		$	884
Adjustment to reconcile net income (loss) to net cash attributable to operating activities:
Provision for deferred income taxes	(971		)	(49		)	—			(1		)	—			(1,021		)
(Gain) loss from subsidiaries	44			(2		)	—			—			(42		)	—
Net gain on mortgage loans held for sale	—			(175		)	—			(1		)	—			(176		)
Reverse mortgage loan interest income	—			(206		)	—			—			—			(206		)
Provision for servicing reserves	—			38			—			—			—			38
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities	—			225			—			—			—			225
Fair value changes in excess spread financing	—			6			—			(1		)	—			5
Fair value changes in mortgage servicing rights financing liability	—			6			—			—			—			6
Fair value changes in mortgage loans held for investment	—			—			—			(2		)	—			(2		)
Amortization of premiums, net of discount accretion	3			7			—			(1		)	—			9
Depreciation and amortization for property and equipment and intangible assets	—			33			—			6			—			39
Share-based compensation	—			1			—			1			—			2
Other (gain) loss	—			1			—			(1		)	—			—
Repurchases of forward loans assets out of Ginnie Mae securitizations	—			(527		)	—			—			—			(527		)
Mortgage loans originated and purchased for sale, net of fees	—			(8,888		)	—			—			—			(8,888		)
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment	—			9,389			—			16			—			9,405
Changes in assets and liabilities:
Advances and other receivables, net	—			43			—			—			—			43
Reverse mortgage interests, net	—			1,569			—			(25		)	—			1,544
Other assets	1			(18		)	(6		)	(38		)	—			(61		)
Payables and accrued liabilities	28			(130		)	—			34			—			(68		)
Net cash attributable to operating activities	(11		)	1,279			—			(17		)	—			1,251


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018 (Continued)

	Successor
	Mr. Cooper			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations		Consolidated
Investing Activities
Acquisition, net of cash acquired	—			—			—		(33		)	—		(33		)
Property and equipment additions, net of disposals	—			(18		)	—		3			—		(15		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—			(313		)	—		6			—		(307		)
Proceeds on sale of forward and reverse mortgage servicing rights	—			105			—		—			—		105
Net cash attributable to investing activities	—			(226		)	—		(24		)	—		(250		)

Financing Activities
Increase in warehouse facilities	—			(351		)	—		—			—		(351		)
Decrease in advance facilities	—			40			—		5			—		45
Proceeds from issuance of HECM securitizations	—			—			—		343			—		343
Repayment of HECM securitizations	—			—			—		(374		)	—		(374		)
Proceeds from issuance of participating interest financing in reverse mortgage interests	—			112			—		—			—		112
Repayment of participating interest financing in reverse mortgage interests	—			(943		)	—		—			—		(943		)
Proceeds from issuance of excess spread financing	—			255			—		—			—		255
Repayment of excess spread financing	—			(38		)	—		—			—		(38		)
Settlement of excess spread financing	—			(77		)	—		—			—		(77		)
Repayment of nonrecourse debt - legacy assets	—			—			—		(6		)	—		(6		)
Redemption and repayment of unsecured senior notes	—			(1,030		)	—		—			—		(1,030		)
Proceeds from non-controlling interests	—			3			—		—			—		3
Debt financing costs	—			(3		)	—		1			—		(2		)
Net cash attributable to financing activities	—			(2,032		)	—		(31		)	—		(2,063		)
Net decrease in cash and cash equivalents	(11		)	(979		)	—		(72		)	—		(1,062		)
Cash and cash equivalents - beginning of period	11			1,358			1		253			—		1,623
Cash and cash equivalents - end of period	$	—		$	379		$	1	$	181		$	—	$	561


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD JANUARY 1 TO JULY 31, 2018

	Predecessor
	Nationstar			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)			Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Operating Activities
Net income (loss) attributable to Nationstar	$	154		$	181		$	12		$	44		$	(237	)	$	154
Adjustment to reconcile net income (loss) to net cash attributable to operating activities:
Provision for deferred income taxes	—			63			—			—			—			63
(Gain) loss from subsidiaries	(181		)	(56		)	—			—			237			—
Net gain on mortgage loans held for sale	—			(295		)	—			—			—			(295		)
Reverse mortgage loan interest income	—			(274		)	—			—			—			(274		)
(Gain) on sale of assets	—			—			—			(9		)	—			(9		)
MSL related increased obligation	—			59			—			—			—			59
Provision for servicing reserves	—			70			—			—			—			70
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities	—			(178		)	—			1			—			(177		)
Fair value changes in excess spread financing	—			81			—			—			—			81
Fair value changes in mortgage servicing rights financing liability	—			16			—			—			—			16
Amortization of premiums, net of discount accretion	—			11			—			(3		)	—			8
Depreciation and amortization for property and equipment and intangible assets	—			26			—			7			—			33
Share-based compensation	—			16			—			1			—			17
Other loss	—			3			—			—			—			3
Repurchases of forward loans assets out of Ginnie Mae securitizations	—			(544		)	—			—			—			(544		)
Mortgage loans originated and purchased for sale, net of fees	—			(12,328		)	—			—			—			(12,328		)
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment	—			13,381			—			11			—			13,392
Changes in assets and liabilities:
Advances and other receivables, net	—			377			—			—			—			377
Reverse mortgage interests, net	—			1,866			—			(265		)	—			1,601
Other assets	9			(294		)	(12		)	256			—			(41		)
Payables and accrued liabilities	27			65			—			(4		)	—			88
Net cash attributable to operating activities	9			2,246			—			39			—			2,294


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD JANUARY 1 TO JULY 31, 2018 (Continued)

	Predecessor
	Nationstar			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations		Consolidated
Investing Activities
Property and equipment additions, net of disposals	—			(35		)	—		(5		)	—		(40		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—			(127		)	—		(7		)	—		(134		)
Net payment related to acquisition of HECM related receivables	—			(1		)	—		—			—		(1		)
Proceeds on sale of assets	—			—			—		13			—		13
Net cash attributable to investing activities	—			(163		)	—		1			—		(162		)

Financing Activities
Decrease in warehouse facilities	—			(585		)	—		—			—		(585		)
Decrease in advance facilities	—			(55		)	—		(250		)	—		(305		)
Proceeds from issuance of HECM securitizations	—			—			—		759			—		759
Repayment of HECM securitizations	—			—			—		(448		)	—		(448		)
Proceeds from issuance of participating interest financing in reverse mortgage interests	—			208			—		—			—		208
Repayment of participating interest financing in reverse mortgage interests	—			(1,599		)	—		—			—		(1,599		)
Proceeds from issuance of excess spread financing	—			70			—		—			—		70
Repayment of excess spread financing	—			(3		)	—		—			—		(3		)
Settlement of excess spread financing	—			(105		)	—		—			—		(105		)
Repayment of nonrecourse debt - legacy assets	—			—			—		(7		)	—		(7		)
Repurchase of unsecured senior notes	—			(62		)	—		—			—		(62		)
Repurchase of common stock	—			—			—		—			—		—
Surrender of shares relating to stock vesting	(9		)	—			—		—			—		(9		)
Debt financing costs	—			(24		)	—		—			—		(24		)
Dividends to non-controlling interests	—			(1		)	—		—			—		(1		)
Net cash attributable to financing activities	(9		)	(2,156		)	—		54			—		(2,111		)
Net decrease in cash and cash equivalents	—			(73		)	—		94			—		21
Cash and cash equivalents - beginning of period	—			423			1		151			—		575
Cash and cash equivalents - end of period	$	—		$	350		$	1	$	245		$	—	$	596


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2017

	Predecessor
	Nationstar		Issuer⁽¹⁾		Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	195	$	1	$	19	$	—		$	215
Restricted cash	—		228		—		132		—			360
Mortgage servicing rights	—		2,910		—		31		—			2,941
Advances and other receivables, net	—		1,706		—		—		—			1,706
Reverse mortgage interests, net	—		9,110		—		874		—			9,984
Mortgage loans held for sale at fair value	—		1,891		—		—		—			1,891
Mortgage loans held for investment, net	—		1		—		138		—			139
Property and equipment, net	—		102		—		19		—			121
Other assets	—		585		182		779		(867		)	679
Investment in subsidiaries	1,846		522		—		—		(2,368		)	—
Total assets	$	1,846	$	17,250	$	183	$	1,992	$	(3,235	)	$	18,036

Liabilities and Stockholders’ Equity
Unsecured senior notes, net	$	—	$	1,874	$	—	$	—	$	—		$	1,874
Advance facilities, net	—		106		—		749		—			855
Warehouse facilities, net	—		3,285		—		—		—			3,285
Payables and accrued liabilities	—		1,202		1		36		—			1,239
MSR related liabilities - nonrecourse at fair value	—		987		—		19		—			1,006
Mortgage servicing liabilities	—		41		—		—		—			41
Other nonrecourse debt, net	—		7,167		—		847		—			8,014
Payables to affiliates	124		742		—		1		(867		)	—
Total liabilities	124		15,404		1		1,652		(867		)	16,314
Total stockholders’ equity	1,722		1,846		182		340		(2,368		)	1,722
Total liabilities and stockholders’ equity	$	1,846	$	17,250	$	183	$	1,992	$	(3,235	)	$	18,036


⁽¹⁾	Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2017

	Predecessor
	Nationstar		Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Revenues:
Service related, net	$	—	$	717		$	28	$	298		$	—		$	1,043
Net gain on mortgage loans held for sale	—		606			—		1			—			607
Total revenues	—		1,323			28		299			—			1,650
Expenses:
Salaries, wages and benefits	—		605			5		132			—			742
General and administrative	—		590			11		132			—			733
Total expenses	—		1,195			16		264			—			1,475
Other income (expenses):
Interest income	—		544			—		53			—			597
Interest expense	—		(675		)	—		(56		)	—			(731		)
Other expenses	—		(6		)	—		9			—			3
Gain (loss) from subsidiaries	30		53			—		—			(83		)	—
Total other income (expenses), net	30		(84		)	—		6			(83		)	(131		)
Income (loss) before income tax expense	30		44			12		41			(83		)	44
Less: Income tax expense	—		13			—		—			—			13
Net income (loss)	30		31			12		41			(83		)	31
Less: Net loss attributable to non-controlling interests	—		1			—		—			—			1
Net income (loss) attributable to Nationstar	$	30	$	30		$	12	$	41		$	(83	)	$	30


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2017

	Predecessor
	Nationstar			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)			Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Operating Activities
Net income attributable to Nationstar	$	30		$	30		$	12		$	41		$	(83	)	$	30
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
Provision for deferred income taxes	—			(46		)	—			—			—			(46		)
Net income attributable to non-controlling interests	—			1			—			—			—			1
(Gain) loss from subsidiaries	(30		)	(53		)	—			—			83			—
Net gain on mortgage loans held for sale	—			(606		)	—			(1		)	—			(607		)
Reverse mortgage loan interest income	—			(490		)	—			—			—			(490		)
(Gain) Loss on sale of assets	—			1			—			(9		)	—			(8		)
Provision for servicing reserves	—			148			—			—			—			148
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities	—			430			—			—			—			430
Fair value changes in excess spread financing	—			15			—			(3		)	—			12
Fair value changes in mortgage servicing rights financing liability	—			(17		)	—			—			—			(17		)
Amortization of premiums, net of discount accretion	—			73			—			9			—			82
Depreciation and amortization for property and equipment and intangible assets	—			45			—			14			—			59
Share-based compensation	—			12			—			5			—			17
Other loss	—			6			—			—			—			6
Repurchases of forward loans assets out of Ginnie Mae securitizations	—			(1,249		)	—			—			—			(1,249		)
Mortgage loans originated and purchased for sale, net of fees	—			(19,159		)	—			—			—			(19,159		)
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment	—			20,760			—			16			—			20,776
Excess tax (deficiency) from share based compensation	—			(1		)	—			—			—			(1		)
Changes in assets and liabilities:
Advances and other receivables, net	—			(30		)	—			—			—			(30		)
Reverse mortgage interests, net	—			1,829			—			(157		)	—			1,672
Other assets	4			(103		)	(12		)	36			—			(75		)
Payables and accrued liabilities	—			(179		)	(1		)	(12		)	—			(192		)
Net cash attributable to operating activities	4			1,417			(1		)	(61		)	—			1,359


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2017 (Continued)

	Predecessor
	Nationstar			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)			Non-Guarantor (Subsidiaries of Issuer)			Eliminations		Consolidated
Investing Activities
Property and equipment additions, net of disposals	—			(37		)	—			(5		)	—		(42		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—			(56		)	—			(7		)	—		(63		)
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables	—			16			—			—			—		16
Proceeds on sale of forward and reverse mortgage servicing rights	—			71			—			—			—		71
Proceeds on sale of assets	—			16			—			—			—		16
Purchase of investment	—			(4		)	—			—			—		(4		)
Net cash attributable to investing activities	—			6			—			(12		)	—		(6		)

Financing Activities
Increase in warehouse facilities	—			863			—			—			—		863
Decrease in advance facilities	—			(81		)	—			(160		)	—		(241		)
Proceeds from issuance of HECM securitizations	—			—			—			707			—		707
Repayment of HECM securitizations	—			(1		)	—			(571		)	—		(572		)
Proceeds from issuance of participating interest financing in reverse mortgage interests	—			575			—			—			—		575
Repayment of participating interest financing in reverse mortgage interests	—			(2,597		)	—			—			—		(2,597		)
Repayment of excess spread financing	—			(23		)	—			—			—		(23		)
Settlement of excess spread financing	—			(207		)	—			—			—		(207		)
Repayment of nonrecourse debt - legacy assets	—			—			—			(15		)	—		(15		)
Repurchase of unsecured senior notes	—			(123		)	—			—			—		(123		)
Surrender of shares relating to stock vesting	(4		)	—			—			—			—		(4		)
Debt financing costs	—			(13		)	—			—			—		(13		)
Dividends to non-controlling interests	—			(5		)	—			—			—		(5		)
Net cash attributable to financing activities	(4		)	(1,612		)	—			(39		)	—		(1,655		)
Net increase (decrease) in cash and cash equivalents	—			(189		)	(1		)	(112		)	—		(302		)
Cash and cash equivalents - beginning of year	—			612			2			263			—		877
Cash and cash equivalents - end of year	$	—		$	423		$	1		$	151		$	—	$	575


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2016

	Predecessor
	Nationstar		Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Revenues:
Service related, net	$	—	$	658		$	33	$	431		$	—		$	1,122
Net gain on mortgage loans held for sale	—		764			—		29			—			793
Total revenues	—		1,422			33		460			—			1,915
Expenses:
Salaries wages and benefits	—		601			5		207			—			813
General and administrative	—		617			8		206			—			831
Total expenses	—		1,218			13		413			—			1,644
Other income (expenses):
Interest income	—		375			—		50			—			425
Interest expense	—		(592		)	—		(73		)	—			(665		)
Other expense	—		(2		)	—		—			—			(2		)
Gain (loss) from subsidiaries	19		44			—		—			(63		)	—
Total other income (expenses), net	19		(175		)	—		(23		)	(63		)	(242		)
Income (loss) before income tax expense	19		29			20		24			(63		)	29
Less: Income tax expense	—		13			—		—			—			13
Net income (loss)	19		16			20		24			(63		)	16
Less: Net income (loss) attributable to non-controlling interests	—		(3		)	—		—			—			(3		)
Net income (loss) attributable to Nationstar	$	19	$	19		$	20	$	24		$	(63	)	$	19


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016

	Predecessor
	Nationstar			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)			Non- Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Operating Activities
Net income (loss) attributable to Nationstar	$	19		$	19		$	20		$	24		$	(63	)	$	19
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
Provision for deferred income taxes	—			(5		)	—			—			—			(5		)
Net loss attributable to non-controlling interests	—			(3		)	—			—			—			(3		)
(Gain) loss from subsidiaries	(19		)	(44		)	—			—			63			—
Net gain on mortgage loans held for sale	—			(764		)	—			(29		)	—			(793		)
Reverse mortgage loan interest income	—			(344		)	—			—			—			(344		)
Loss on sale of assets	—			2			—			—			—			2
Loss on impairment of assets	—			25			—			—			—			25
Provision for servicing reserves	—			108			—			—			—			108
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities	—			484			—			—			—			484
Fair value changes in excess spread financing	—			3			—			22			—			25
Fair value changes in mortgage servicing rights financing liability	—			(42		)	—			—			—			(42		)
Amortization of premiums, net of discount accretion	—			(9,907		)	—			9,971			—			64
Depreciation and amortization for property and equipment and intangible assets	—			43			—			20			—			63
Share-based compensation	—			15			—			6			—			21
Repurchases of forward loans assets out of Ginnie Mae securitizations	—			(1,432		)	—			—			—			(1,432		)
Mortgage loans originated and purchased for sale, net of fees	—			(19,616		)	—			(794		)	—			(20,410		)
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment	—			31,024			—			(8,993		)	—			22,031
Excess tax benefit from share based compensation	—			4			—			—			—			4
Changes in assets and liabilities:
Advances and other receivables, net	—			582			—			—			—			582
Reverse mortgage interests, net	—			607			—			(35		)	—			572
Other assets	117			(707		)	(21		)	586			—			(25		)
Payables and accrued liabilities	—			46			1			(21		)	—			26
Net cash attributable to operating activities	117			98			—			757			—			972


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 (Continued)

	Predecessor
	Nationstar			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non- Guarantor (Subsidiaries of Issuer)			Eliminations		Consolidated
Investing Activities
Property and equipment additions, net of disposals	—			(55		)	1		(8		)	—		(62		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—			(120		)	—		(24		)	—		(144		)
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables	—			(3,600		)	—		—			—		(3,600		)
Proceeds on sale of forward and reverse mortgage servicing rights	—			68			—		—			—		68
Net cash attributable to investing activities	—			(3,707		)	1		(32		)	—		(3,738		)

Financing Activities
Increase (decrease) in warehouse facilities	—			637			—		(108		)	—		529
Increase (decrease) in advance facilities	—			(51		)	—		(499		)	—		(550		)
Proceeds from issuance of HECM securitizations	—			—			—		728			—		728
Repayment of HECM securitizations	—			—			—		(713		)	—		(713		)
Proceeds from issuance of participating interest financing in reverse mortgage interests	—			4,124			—		—			—		4,124
Repayment of participating interest financing in reverse mortgage interests	—			(1,185		)	—		—			—		(1,185		)
Proceeds from issuance of excess spread financing	—			155			—		—			—		155
Repayment of excess spread financing	—			(198		)	—		—			—		(198		)
Repayment of nonrecourse debt - legacy assets	—			—			—		(18		)	—		(18		)
Repurchase of unsecured senior notes	—			(40		)	—		—			—		(40		)
Repurchase of common stock	(114		)	—			—		—			—		(114		)
Excess tax (deficiency) benefit from share based compensation	—			(4		)	—		—			—		(4		)
Surrender of shares relating to stock vesting	(3		)	—			—		—			—		(3		)
Debt financing costs	—			(13		)	—		—			—		(13		)
Net cash attributable to financing activities	(117		)	3,425			—		(610		)	—		2,698
Net increase/(decrease) in cash	—			(184		)	1		115			—		(68		)
Cash and cash equivalents - beginning of year	—			796			1		148			—		945
Cash and cash equivalents - end of year	$	—		$	612		$	2	$	263		$	—	$	877


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.