Mr Cooper Group Inc (COOP)

[WithCatz]

David -- I think I missed the part of your post that identifies who are the INVESTORS in the MBSs. You mention, tangentially, that there are questions on who the "owners" are -- as it may not be clear which INVESTOR purchased which MBSs.

Aren't the purchaser of the MBS due the lion-share of the individual mortgages they invested in (through them being securitized as MBSs)?

Said in a simplistic way -- if $100m of mortgages are packaged into an MBS, and the MBSs security is sold to "Investor X" for $101m -- plus the ongoing interest... Doesn't WMB originally pocket the $1m, and a small servicing fee right (which went to JPM).

{Plus, as a side note, WMB then has the original $100m back and can do it again, write new mortgages, package them into MBSs, and sell them for a small profit -- this is how banks make money on the mortgages they do not hold after securitization}

But the original $100m is due to the investor, plus the mortgage interest over time -- through the MBS trust.

Right?

I'm not getting the 'theory' that the original $100m in mortgages can be paid both to the MBS investor (through the 'safe harbor' provision created to protect MBSs) -- ~AND~ that same $100m comes back to the FDIC and on to the WMILT.

It's just one $100m -- right? Can't be spent twice?


...Catz