Mr Cooper Group Inc (COOP)

[CBA09]

Ref:

1) With regard to any/all Assets that may be returned by the FDIC. Whom (WMI Estate?) is ultimately the owner of these Assets and will the LT be the administrator/distributor of said Assets?

Comment:
Two parts here: Assets of the Debtor (WMB) and Assets outside the Debtor - WMI interest in subsidiaries and those in SPE / Trusts.

I would contend that WMI Estate is the ultimate owner -
Since WMI filed for bankruptcy protection its shares of stock ownership in all it's subsidiaries may have become property of the bankruptcy estate. Thereby Bankruptcy Trustee now holds WMI ownership interest in all that the shares of WMI held. Thus WMB and all other wholly owned subsidiaries.

As for the SPE / Trust assets, provisions within each PSA would dictate when a final clearing of accounts removal takes place. Generally this is when all contractual obligations to investors have been fulfilled. Then all remaining residual assets within the SPE / Trust are cleared out. Generally to the SPE that transferred the pooled receivables to the SPE / Trust and not the Sponsor / Originator. Reason not the Sponsor / Originator, this would preclude the True Sale accounting and in turn not classify as bankruptcy remote.

Generally Holding Companies have contractual rights to collect all excess revenues from their subsidiaries. And to the contrary no written contractual rights to pass on the collected revenues. Cash flows to subsidiaries on an as needed basis. This an inherent "adverse to risk" practice of not having assets exposed to potential bankruptcy.


2) Does the distribution process to Escrows, when/if it occurs, revert to prior APR rules or does the POR apply throughout the process?

Comment:

Yes Escrows will get paid but not certain when. Here i would believe the Bankruptcy Trustee will follow the POR.