DISTRESSED DAILY: Spiking Mortgage Rates Stress Mr. Cooper Group

Mr. Cooper Group Inc. is among the mortgage originators feeling rising stress from the rapid jump in interest rates.

The company has been reporting weak results amid a plunge in mortgage originations, which S&P Global Ratings expects to persist “well into 2023.” Mr. Cooper’s debt relative to a measure of earnings is also expected “to rise well above even the cyclical swings we typically anticipate,” analysts David Logeman and Gaurav Parikh wrote in a note last week.

A sharp drop in the company’s earnings sent Mr. Cooper’s gross debt to 5.7 times adjusted Ebitda in the 12 months through Sept. ...