Mr Cooper Group Inc (COOP)

[CBA09]

Ref: My concern mainly arises from the $165 billion off balance sheet report from the 2015 JPM 10k where they stated something like $80 billion of the loans were liquidated. Do you think they would be on the hook to redeploy those liquidated assets?

Comments:

Difficult to discern. Would have to see the actual "Off Balance Sheet" entries.

$ 80 Billion is a lot if this was in fact only for one year. But what I do know is that foreclosed securitized real estate generally has a three year window to finalized a liquidation. So this $ 80 Billion could be a true up entry for previous three years foreclosures. Then again, the $ 80 Billion Liquidation proceeds might have been in excess of the aggregate "principal" certificate holders balances. Example foreclosed property had a loan to value (LTV) of 60 %. Fair Market Value of home $ 100 K Loan 60 K and actual liquidation proceeds was $ 80 K.

FASB requirements of disclosure are very strict for "Off Balance Sheet" (OBS)transactions. Being so, what there any notes as to $ amount of (OBS) loan replacements by JPM?

As far as JPM being on the hook to replenish the $ 80 Billion, I could not say one way or another. The PSA provisions would provide that answer.