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There is an anonymous ID that was trotted out after the mortgage DD started years ago on another MB. They claim to have worked for WMB as a partial cog in the securitization chain.
Their claimed experience ignores that 1) WMI assets and 'mortgages held in portfolio', as well as 2). the FDIC P&AA section 3.2 saying assets owned by WMI/WMB subs, are not sold to JPM nor included in the Purchase and Assumption Agreement. So really any assets of Assets within WMB, were not sold to JPM in the PAA.
Further, my DD of "bulk loan purchase and sale agreements" show WMI legally sold to itself from one pocket to another, hundreds of billions worth of "loans held in portfolio" (as shown in WMI consolidated entities, consolidated 2008 10-k).
In the sale, these assets were effectively only "pledged" to WMI's own subs as buyers, and parent WMI retained title to these assets to hold in its portfolio. REMEMBER, assets within Assets (certain WMI/WMB Subsidiearies) were absolutely NOT sold to JPM, unless they want to pay for them as the PAA provides.
Therefore, ONLY certain whole bank assets were sold to JPM, excluding assets (such as portfolio mortgages) of the Assets (WAAC, WMMSC, etc which JPM getting the shell only for mortgage servicing). Then, for the sake of a 'public' bankruptcy and political flogging to hide a 5th Amendment Taking of WMI consolidated to save JPM, the FDIC in 2010 renewed and made retroactive all provisions of "safe harbor and legal isolation" of mortgage assets, which stripped WMI of one of its largest assets, the $278 Billion in portfolio held loans.
Legal isolation and safe harbor gives the public impression of diminished assets, allows the FDIC script to continue of the 'largest bank failure in history', and solidifies the legitimacy of the Delaware chapter 11 filings (2).
This Value eventually returns to the WMI estate and only to those who released, after remaining claims.
Thx bruddah! We'll see how long that stays up.....
Same as your opinion.....all these years and yet here you are still.....keep on keeping on
Has the receivership of WMB been reconciled and terminated? Nope, so neither are you, if you actually released.
No it doesn't for WMI assets held in legal isolation and safe harbor by the FDIC, pending termination of the WMB receivership.
I know you know this but keep posting misinformation. Why?
There are 2 independent and concurrent ways for assets to return to those who released.
1). Legacy WMI
2). Legacy WMB
LMAO, yes banks worldwide are shedding $100B in unnecessary deposits everywhere you look......right, lol.
Another place shows WMI held 'mortgages in portfolio'. WMI/WMIIC vs. FDIC 2009 http://www.cgsh.com/cgsh/WMI_v_FDIC_Complaint.pdf pg 6
"Pursuant to the Servicing Agreement, WMB, as Servicer, collected amounts due under the mortgage loans and, at predetermined intervals, remitted such amounts to WMI or its subsidiaries, as the holders of such mortgage loans.
And to clarify, this was just for payments due from servicing WMI's mortgage holdings for 1) one short interval, and 2) from one portfolio, that was interrupted by the receivership.
The big news is further confirmation WMI held loans in ITS portfolio, which many of us know.
Always remember there is more than one path to recovery for those who released. Recovery can come at different times from:
1) legacy WMIholding company assets (after remaining claims are exhausted) and
2) legacy WMB assets (after remaining claims are exhausted) and/or
3) a mixture of both WMI and WMB
For example, the WMI consolidated entities "mortgages held in portfolio" assets are MASSIVE ($240B of just senior loans - doesnt include 2nd, Heloc, etc), and dwarf the senior claims before we, who released. Whatever has been refinanced or sold to JPM or others while being serviced during the BK, begets cash. Even in 2009, the much smaller Indymac's 'mortgages held in portfolio assets' were sold by the FDIC receiver to cover its claims and expenses, for 70% of principle on 'current paying' loans, and 60% on 'delinquent' loans.
For example, for us who released this means:
If we come to find the mortgage assets are solely WMI's: $80B legacy WAMU - $5Billion-ish unvetted claims left on KCCLLC register = HUGE life changing event. or,
If we come to find the mortgage assets are solely WMB's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMB = Huge life changing event. or,
If we come to find the mortgage assets are solely WMBfsb's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMBfsb = Huge life changing event. or,
If we come to find the mortgage assets are solely a blend of WMI/WMB/WMBfsb's: $80B legacy WAMU - $25Billion-ish in unvetted claims left against WMI/WMB/WMBfsb = Huge life changing event.
It's a happy life changing event (HLCE), whichever way the assets fall. And mortgage assets weren't kept just in one subsidiary. Different paths, different HLCE from each.
"The examiner in this report has an analysis of solvency, but he also did not conduct a review of the loan portfolio.
http://wmish.com/exam/examiner_report.pdf page 25 bottom.
WHO'S report is this for? Yes, WMI in WMI's bankruptcy.........the examiner says he didn't review the loan portfolio, of WMI.
Think about that for a second.........not that there wasn't a loan portfolio OWNED by WMI, but that he didn't review it!!!
WOW and Holy Xmas, right!!!!!!!
one short footnote buried in a 5 line paragraph entitled "Inadequate Disclosure and Analysis of Other Assets".
.........a needle in a haystack. don't bring attention to WMI's massive loan portfolio that is legally invisible to everyone, per FDIC mandate in "legal isolation and safe harbor", except the FDIC and JPM, who services it. KMART redux.
Kabooom!
page 25 http://wmish.com/exam/examiner_report.pdf
Also for fun, google wmish.com. There is a horde of data there, if you look at all the different indexes. Many of us have save all of it- just in case, and contributed as well.
footnote 39
Excellent explanation.
The pied piper will always have a tune to play for the regular readers. Don't give in, keep digging! I appreciate it.
Excellent explanation with links ! Thanks.
Another old clue in plain view.......look at the OTS fact sheet on WMBank.
http://www.occ.gov/static/news-issuances/ots/press-releases/ots-pr-2008-46b.pdf
A. It says WMB held $120B of mortgages. We know WMI consolidated filings show about $270B total. Simple math, leaves about $150B in WMI the parent. Bottom line, there is definitely more assets than claims in the way. Even IndyMac's mortgage liquidation in 2009 by the FDIC yielded 55-70% (delinquent - current payers).
B. Now combine that with the 4 ways value returns to those who released:
- If we come to find the mortgage assets are solely WMI's: $80B legacy WAMU - $5Billion-ish unvetted claims left on KCCLLC register = HUGE life changing event. or,
- If we come to find the mortgage assets are solely WMB's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMB = Huge life changing event. or,
- If we come to find the mortgage assets are solely WMBfsb's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMBfsb = Huge life changing event. or,
- If we come to find the mortgage assets are solely a blend of WMI/WMB/WMBfsb's: $80B legacy WAMU - $25Billion-ish in unvetted claims left against WMI/WMB/WMBfsb = Huge life changing event.
C. In conclusion applying the above, $120B in mortgages held by WMB less $25B maximum claims = $60B easy back to those who released. (compared to 2009 Indymac mortgage asset sales at 55-70% of principle).
PLUS
and about $150B in mortgage assets held by other non-bank WMI consolidated entities, less $5B in maximum claims = $90B easy back to those who released. (compared to 2009 Indymac mortgage asset sales at 55-70% of principle).
D. Everyone understand why there might be counter efforts to obfuscate?
Exactly. The 1% premium paid was earned and covered on JPM's new leverage deals faster than the champagne ran dry at Jaimie D's WAMU bank acquisition party!
LMAO when some say JPM got $300B in assets (mostly holding company assets) for $1.8B. ROTF!
Always remember there is more than one path to recovery for those who released. Recovery can come at different times from:
1) legacy WMIholding company assets (after remaining claims are exhausted) and
2) legacy WMB assets (after remaining claims are exhausted) and/or
3) a mixture of both WMI and WMB
For example, the WMI consolidated entities "mortgages held in portfolio" assets are MASSIVE ($240B of just senior loans - doesnt include 2nd, Heloc, etc), and dwarf the senior claims before we, who released. Whatever has been refinanced or sold to JPM or others while being serviced during the BK, begets cash. Even in 2009, the much smaller Indymac's 'mortgages held in portfolio assets' were sold by the FDIC receiver to cover its claims and expenses, for 70% of principle on 'current paying' loans, and 60% on 'delinquent' loans.
For example, for us who released this means:
If we come to find the mortgage assets are solely WMI's: $80B legacy WAMU - $5Billion-ish unvetted claims left on KCCLLC register = HUGE life changing event. or,
If we come to find the mortgage assets are solely WMB's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMB = Huge life changing event. or,
If we come to find the mortgage assets are solely WMBfsb's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMBfsb = Huge life changing event. or,
If we come to find the mortgage assets are solely a blend of WMI/WMB/WMBfsb's: $80B legacy WAMU - $25Billion-ish in unvetted claims left against WMI/WMB/WMBfsb = Huge life changing event.
It's a happy life changing event (HLCE), whichever way the assets fall. And mortgage assets weren't kept just in one subsidiary. Different paths, different HLCE from each.
Excellent DD, JWW. Its been bantered around between some of us, that the purchase was 1% of deposits, as was thought to be typical. But we never put the FDIC pieces and the JPM bid part together as clearly as you did.
Thanks again! Just further cements in my brain what a great day is coming soon.
Thanks to all who keep on digging and filling in the missing links.
The FDIC has a copy of WAMU's books as mandated by law for receiverships. There are multiple other ways for this information to be cross checked. I posted a list a couple days back, from the FDIC website for all their subcontractor awards for reconciling receiverships.
If loans were refinanced or sold or xyz, THERE IS cash coming back in return. They don't get sold for zero consideration. Yesterday I posted in 2009, Indymac receivership loans sold for 70% of principle owed on current loans, and 55-60% of principle on delinquent loans.
Even if 55% was the sale price of WAMUs $240B mortgages held in portfolio, $120B is WAY BEYOND a maximum of $25B in possible claims, leading to massive shareholder recovery, if you released........and we know WAMUs loans were less than 10% delinquent.......the numbers are staggering. But it is what it is!
Hint: JPM off balance sheet R-203.
It actually doesn't matter who WAAC belongs to......WMI, or WMB, or WMBfsb. Take every asset, regardless of the parent ownership tree, and there is a separate path of some returned value. They all come back to us, after their each unique 'journey' settling the appropriate claims in front. Ultimately those who released benefit from the residuals of whatever remains, from wherever.
This is KEY, to not getting lost in the 'weeds' that sprout up here daily.
The WMI consolidated entities "mortgages held in portfolio" assets are MASSIVE, and dwarf the senior claims before we, who released.
For example:
If we come to find the mortgage assets are solely WMI's: $80B legacy WAMU - $5Billion-ish unvetted claims left on KCCLLC register = HUGE life changing event. or,
If we come to find the mortgage assets are solely WMB's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMB = Huge life changing event. or,
If we come to find the mortgage assets are solely WMBfsb's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMBfsb = Huge life changing event. or,
If we come to find the mortgage assets are solely a blend of WMI/WMB/WMBfsb's: $80B legacy WAMU - $25Billion-ish in unvetted claims left against WMI/WMB/WMBfsb = Huge life changing event.
It's a happy life changing event (HLCE), whichever way the assets fall. And mortgage assets weren't kept just in one subsidiary. Different paths, different HLCE from each.
Every refinance is CASH BACK to the seller (bank who owned rights to that note). That CASH, was held off balance with JPM 'as servicer' (R-203). The CASH from refinances does not disappear. Its not in suitcases, lol. Every wire can be traced and tracked. FDIC subcontractor (I posted yesterday some) are not going to jail, for JPM or anybody's shenanigans hiding tens of billions of cash.
When you're WAMU, and in the Top 5 largest mortgage portfolio lenders (you own AND hold your own notes) and servicers..............to the tune of over half a trillion bucks, it takes some elbow grease and a lot of time to sort it out!!!
Between refi's, loan servicing sales, etc. there is a lot of forensic accounting to do.
I doubt our hedge fund co-partners are gonna let this value slide, nor will SG/MW.
I'm not gonna let it slide, which is why its important if you feel insecure about it, to DD as much as you can.
Information is Power.
WMI kept its $240Billion + mortgage portfolio in-house, sold to itself (subsidiaries, but part of WMIs consolidated financial's assets), and created further income off these 'held in portfolio' assets by pledging (not technically 'sold' thanks to good lawyering) these assets into trusts which generated income off the monthly mortgagees.....all without losing ownership of the underlying mortgage assets.
Step 1: This is a signed PSA showing how 'WMI consolidated' sold mortgage loan assets to itself, and the value of these assets remained in WMI's consolidated tax returns and SEC filings.........not sold to other investors in MBS pools (http://www.sec.gov/Archives/edgar/data/1317069/000127727705000807/mlpawaac.pdf), note the price confidentiality document at the end. Who knows what price they 'sold' the loans to themselves at........probably zero, otherwise you'd pay corporate income taxes. This was basically a way to quit claim a massive loan file to yourself.....
$278 Billion in mortgage assets on WMI's 2008 10-k can't be counted as 10-K 'assets' if another investor truly bought them!!! Pretty simple. WMI had in-house control of its mortgage portfolio, selling to itself, servicing for itself.
Step 2: WMIs consolidated subs, then take the in-house held originations, and pledge (not sell) them into REMIC Trusts with the stated intention of never delivering the underlying mortgage originations to the trust.
It sounds counter intuitive, but 'it is what it is'. The loans weren't "sold" as you think 'sold' means.................'Owned by investors' just means that there was collateral to protect their Investment Conduit investment (REMIC = Real Estate Mortgage Investment Trust) that could be substituted in when a loan was in default.... The 'Investment Conduit' remember, is just a purchased % of the monthly income as mortgagees pay their monthly bill.
The investors didn't buy the whole loan..............they are investment conduits exactly as the name implies. The many REMIC investor prospectus' AND the Bulk Loan Sale Purchase and Sale Agreements between WMI/WMB/WMBfsb not only confirm it, but state it upfront - no mortgage notes are delivered to investors and are held in-house by WMB/WMBfsb/WMI subsidiaries!! The investors knew what they were buying. And further, WMI's consolidated filings can't claim $240 Billion in mortgages held in portfolio AS ASSETS, if the underlying notes were SOLD and DELIVERED to investors.
And I can't stress it more, IMO the whole DB lawsuit is based on the fact that the WMB receivership 'interrupted' the ability for non-performing loans to get substituted with performing loans. And when non-performing loans are not swapped out for 7 years, there is definitely less monthly income to be made every month as people pay their mortgages. DB was forced to sue under worst case projections, from the mess Sheila Bair created.
Step 3: POR7/GSA only covered WMI assets in BK legally available to be covered (Hint = not all of them as some are in safe harbor and legal isolation). The examiners comment about excluded mortgages verifies one very large 'excluded area' (worth $278B in 2008 WMI 10-k). In the JPM PAA, assets within Assets .....not sold to JPM in the PAA (3.1,3.2), and kept in legal isolation/safe harbor in the FDIC receivership.
The balance of these mortgage assets within WMI Assets, will return to WMILT for the benefit of those who released, after any claims in the way are settled.
4 WAYS for Value to Return to those who Released:
If we come to find the mortgages are solely WMI's: $80B legacy WAMU - $5Billion-ish unvetted claims left on KCCLLC register = HUGE life changing event. or,
If we come to find the mortgages are solely WMB's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMB = Huge life changing event. or,
If we come to find the mortgages are solely WMBfsb's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMBfsb = Huge life changing event. or,
If we come to find the mortgages are solely a blend of WMI/WMB/WMBfsb's: $80B legacy WAMU - $25Billion-ish in unvetted claims left against WMI/WMB/WMBfsb = Huge life changing event.
*This doesn't include legacy WAMU HELOCS, 2nd Mortgages, or other performing loans alive and unliquidated that JPM is still servicing. $25-40B*
It all goes back to WMI's consolidated entities 'mortgages held in portfolio' value - sorting and unwinding this giant portfolio is what is taking so long.
Even in 2009, mortgage loans were extremely valuable, despite the crash. Look at Indymac........Indymac mortgages in receivership, were then sold and purchased out of receivership for 55% - 70% of principle, depending on whether the loan was Delinquent (55-60%), or Current (70%)).
In a typical FDIC Structured Asset Transaction where the FDIC was selling Indymac mortgage assets it had in "safe harbor" and "legal isolation" from Indymac Bank's FDIC Receivership, (if JPM decides to buy mortgage assets from what the FDIC-R is holding in "legal isolation" and "safe harbor" then it could look something like this).....https://fdic.gov/about/freedom/IndyMacLoanSaleAgrmt.pdf. After all, this sale was only 5 months following WAMU......
Schedule 2.02 Held for Investment and Held for sale sold for 70% of principle balance PLUS accrued interest. 30 days delinquent = 60%. 60+ days delinquent = 55%. HELOCs 58%, 50%, 37% for Current, 30 Days past, 60 Days past, respectively.
Schedule 2.02: Purchase Price. Subject to the terms and conditions of this Agreement and
the Master Purchase Agreement, the Purchaser shall pay to the Seller, in accordance with the procedures set forth in this Agreement and the Master Purchase Agreement, an aggregate purchase price for the Assets in an amount equal to the sum of each product obtained by multiplying (x) the unpaid principal balance of each Loan, as shown on the Loan Schedule as updated as of the Closing Date, by (y) the applicable percentage for the category set forth on
Schedule 2.02 to which such Loan belongs, plus accrued interest from the paid-to date up to but not including the Closing Date for Loans that are less than thirty (30) days past due (such sum, the "Group 5 Final Purchase Price").
Roughly, if JPM is buying, and the Loan Sale Agreement to JPM is similar, [ $240Billion in WMI's portfolio loans + 30B Held for sale + Helocs ? ] x's .20% bad loans at worst = $54 Billion x's .55% worst delinquent rate = $29.7 Billion purchase price for worst case delinquent loans
Then with the remaining [$186 Billion in WMI loan principle] x's .70% paid current loans = $130 Billion loans paid current purchase price + $54 Billion loans delinquent purchase price = $184 Billion purchase price for the WAMU loan sale agreement.
This is not far off from the $165 Billion in JPM's OFF-Balance Sheet (excluding the $38Billion unliquidated), and I haven't taken into account WAMU HELOC's! Reconcile those out, and I bet the numbers match pretty close.
BIZReader, JPM's indemnification claims related to mortgage servicing of WAMU's vast mortgages held in portfolio, can be found on the FDIC's WMB receivership webpage.
The lists are shown, doesn't necessarily mean the FDIC aggrees or will pay which or all, but it is shown where JPM is claiming some reimbursement per the PAA up to their $500,000,000 PAA indemnification limit.
I just didn't want you to think that if you saw the FDIC making some payment to JPM for indemnification, that you might accidentally assume, from your initial post, that there is no asset value left and all the FDIC gets to do is open up their wallet to JPM indefinitely. Only up to the pre agreed, contractual PAA amount of $500,000,000 related to mortgage servicing.
GLTU Biz, fellow WAMU loooooong from days of old.
Sleepless, look at this list, lol.
https://www.fdic.gov/buying/goods/ListofAwardsandContractorContactInformation.html I've posted this before, but let me break it down. When you read the FDIC link, you will see the contractors listed, and like I've stated before in previous posts regarding this...... 'it's not like Red Green and duct tape are running the show.'
[size=18pt]Awards and Contact Information for FDIC Receivership Assistance Contractors[/size]
Performing receivership reconciliation task such as these few out of many:
Awards and Contact Information for FDIC Financial Compliance Review Services Contactors
The scope of work under the Financial Compliance Review Services Receivership Basic Ordering Agreements (RBOA), which have been awarded to the contractors listed below, is to assist the FDIC in performing financial reviews, reconciliations, invoice reviews, and testing of accounting systems.
Awards and Contact Information for Receivership Management Support Services Contractors.
The FDIC awarded multiple Receivership Basic Ordering Agreements to acquire services on a task order basis with respect to its resolution and receivership line of business. The scope of work of these agreements involves professional services to advise and assist the FDIC, primarily the Division of Resolutions and Receiverships and the newly formed Office of Complex Financial Institutions, with managing resources, programs, projects, activities, etc. necessary to carry out its resolution and receivership line of business:
Consulting Services
Program and Project Management
Other Financial & Business Services
Awards and Contact Information for FDIC Receivership Assistance Contractors
The scope of work under Receivership Assistance Contracts (RACs), which have been awarded to the contractors listed below, encompasses the full range of closing support functions, including: Facilities, Asset Management, Claims, Investigations, Settlement, Employee Benefit Plans, Financial Closing Process, Personnel Administration, Franchise Marketing, Branch Marketing, and Trust.
Awards and Contact Information for FDIC Loan Servicing Assistance, Surveillance and Oversight Services
The scope of work under the FDIC Loan Servicing Assistance, Surveillance and Oversight Services Receivership Basic Ordering Agreements (RBOA), which have been awarded to the contractors listed below, is to provide Loan Servicing Assistance, Surveillance and Oversight at potentially failing or failed financial institutions at which the FDIC has purview. The work entails, but is not limited to, the contractor assisting the FDIC in its work by conducting servicing reviews, reporting any weaknesses identified and recommending strategies for improvement; ongoing oversight and review of institutions internal practices, policies and procedures of servicing for loans held in portfolio(s), securitized loans, loans serviced for others, and other assets the FDIC may be involved with. Loan servicing portfolios will include a variety of products, i.e., agency conforming mortgages, reverse mortgages, Alt-A mortgages, sub-prime mortgages, private label Residential Mortgage and Commercial Mortgage securitizations, commercial loans, construction and development loans, and other assets the FDIC may be involved with.
Awards and Contact Information for Financial Advisory Services · Complex Securities Contractors
In its receivership capacity, the Federal Deposit Insurance Corporation awarded multiple Receivership Basic Ordering Agreements to acquire financial advisory services on a task order basis with respect to its resolution and receivership responsibilities. The scope of work of these agreements involves services to advise and assist the Division of Resolutions and Receiverships with respect to the financial analysis, valuation, management, sales and disposition of a wide variety of securities and other assets stemming from failing or failed FDIC-insured depository financial institutions:
Group 1 - Syndicated Loans
Group 2 - Qualified Financial Contract
Group 3 - Trust Preferred Collateralized Debt Obligation
Group 4 - Trust Preferred Securities
Group 5 - Agency Mortgaged Back Security
Group 6 - Non-Agency Residential Mortgage Backed Securities, Commercial Mortgage
Group 7 - Other Structured Products Asset Backed Security, Collateralized Debt Obligation
Group 8 - Corporate
Group 9 - Equity (Bank Stock/Other Stock)
Group 10 - Syndicated Tax/Community Reinvestment Act/Limited Partnership Pieces
Awards and Contact Information for Securities Financial Advisory Services Contractors
The Securities Financial Advisory Services contracts have been awarded to the contractors listed below. The scope of work encompasses financial advisory services to support FDIC's Receivership Management Program including financial analysis, valuation, management, sales and disposition of a wide variety of securities which may be owned by a failing or failed bank.
Awards and Contact Information for Financial Advisory Valuation Services Contractors
The Financial Advisory Valuation Services contracts have been awarded to the contractors listed below and the scope of work includes the valuation of portfolios of assets for residential, Acquisition and Development Construction (ADC), commercial, and other loan assets of various financial institutions. Additionally, valuation services may also be required to value mortgage servicing rights, where applicable, as well as loan portfolios under management by FDIC.
Awards and Contact Information for Financial Advisory Services · Marketing & Sales of Loan Assets Contractors
The Receivership Basic Ordering Agreements that have been awarded to the contractors listed below encompasses financial advisory services related to marketing and selling loan assets across five pools:
Commercial Real Estate
Single Family Residential
Commercial Loans
Consumer Loans
Agricultural Loans
The scope of work of the agreements involves services to advise and assist the FDIC within its Receivership Management Program activities; specifically, financial advisory services related to developing and implementing a strategy and process to consolidate, market, and sell loan assets from failing and failed financial institutions.
Awards and Contact Information for FDIC Data Management Services Contractors
The scope of work under the Data Management Services (DMS) contract, which has been awarded to the Contractor listed below, encompasses the capture, storage, retrieval, and archiving of the electronically stored information received by the FDIC from failed financial institutions.
Awards and Contact Information for FDIC Subsidiary and Other Assets Management Services Contactors
The scope of work under the Subsidiary and Other Assets Management Services Receivership Basic Ordering Agreements (RBOA), which have been awarded to the contractors listed below, is to manage and operate the Subsidiary Corporations and make appropriate and timely decisions related to corporate governance, management and oversight of operations, marketing of assets and franchise, liquidating assets and resolving liabilities, and dissolving the Subsidiary
Awards and Contact Information for Due Diligence for Single Family Real Estate Services Contractors
The Due Diligence for Single Family Real Estate Services contracts have been awarded to the contractors listed below. The scope of work under due diligence services includes data capture aggregation and analysis, documentation file review, underwriting review, regulatory compliance review, imaging and indexing. Additional services which may be required include: credit quality stratification, loss mitigation stratification, review sufficiency of collateral valuations, ARM audit & repair, document payment histories, and other services which the contractor has expertise to support the valuation of the loans and other activities related to the scope of work under a specific task order assignment.
Awards and Contact Information for FDIC Business Process Operations (BPO) Contractors
The scope of work under Business Process Operations (BPOs), which have been awarded to the contractors listed below, encompasses the overarching architecture of full service BPOs and information technology infrastructure (core banking application network(s)) capable of providing the functionality to service and manage assets. The solution includes providing/overseeing staff necessary to continue the operation of the failed bank's computer infrastructure (system(s), applications, and network(s)) and loan servicing of the assets during the marketing period. The primary services will be pre-close, close, and post close support for data mining, reporting services, IT management, and loan servicing, excluding asset management and loss mitigation.
Awards and Contact Information for Securitization Program - Underwriter Services Contractors
The FDIC has developed a securitization program to facilitate the sale of secured real estate loans (residential performing and nonperforming) owned by banks for which the FDIC is appointed as conservator or receiver. The securitizations will be in the form of private or public offerings. The FDIC has selected the following firms to underwrite securities backed by a pool of loans identified by the FDIC, from one or more banks.
The Underwriter will assist the FDIC and/or any of its financial advisors, in connection with the FDIC's Program, with respect to analyzing the Loans and the results of due diligence obtained on the Loans. The Underwriter may propose alternative structures and disposition strategies, and recommend an optimal securitization structure, assist the FDIC in reviewing and monitoring the preparation of transaction documentation. The Underwriter may also work with the credit rating agencies to potentially obtain credit ratings for the securities, coordinate the marketing and settlement process, and support the securities in the secondary market.
Awards and Contact Information for FDIC Securitization Master Servicer Contractors
The Master Servicer shall oversee the servicing activities of servicers assigned loans by the FDIC, monitor the servicer, and verify that the servicer's efforts are adhering to the servicer's obligations. This must be accomplished pursuant to the applicable servicing agreement, FDIC's contract with the servicer, or other governing agreements. The Master Servicer has authority to enforce servicer obligations as well as calculate and administer the servicer's monthly servicing fee and any other ancillary or incentive fees due to the servicer.
Awards and Contact Information for FDIC Loan Servicing Contractors
The scope of work under Loan Servicing Contracts (LSCs), which have been awarded to the contractors listed below, encompasses the full range of Commercial, Residential, and Consumer loan servicing functions for loans received from failed financial institutions, which are placed in Receivership or Conservatorship and managed by the FDIC. These LSCs are charged with safeguarding assets while providing loan services, including general loan administration, debt restructuring, and collection services appropriate to the type of loan being serviced. These loans under these contracts may be performing or non-performing.
Awards and Contact Information for Financial Advisory Services · Note Structuring
The FDIC awarded multiple Receivership Basic Ordering Agreements to acquire financial advisory services on a task order basis with respect to its resolution and receivership responsibilities. The scope of work of these agreements involves services to advise and assist the Division of Resolutions and Receiverships with respect to developing and analyzing debt instruments, particularly in the form of promissory notes, related to residential and commercial loans and other assets stemming from failing or failed financial institutions.
Awards and Contact Information for Financial Advisory Services · Owned Real Estate (ORE) Sales.
The FDIC awarded multiple Receivership Basic Ordering Agreements to acquire financial advisory services on a task order basis with respect to its resolution and receivership responsibilities. The scope of work of these agreements involves services that support the financial analysis, valuation, management, sales and disposition of land assets obtained from failed institutions and currently under the control of the FDIC.
AND SOOO MUCH MORE.....THE LIST OF SUBS HIRED IS IMMENSE. LMFAO AT THOSE WHO THINK THE FDIC ISNT ON TOP OF RECONCILING THE WAMU RESOLUTION AND RECEIVERSHIP ;) ;) ;) ;) ;) ;)
And to clarify, FDIC has to indemnify JPM up to $500,000,000 per the PAA, so there will be some WAMU liabilities paid by JPM, and reimbursed by the FDIC.
These indemnification costs are related to certain JPM liabilities from servicing the WAMU loan portfolio the FDIC holds in "safe harbor" and "legal isolation, per its mandate.
So technically we could see some payments made by the FDIC to JPM, but you're correct in that nothing more will be paid to JPM by the FDIC because their is no losses greater than assets.
Not all receiverships were anywhere close to the size of WAMU. In the other receiverships, there weren't any assets above liabilities to attribute a book value to, imo.
WAMU is one of a kind....
WAMU was a solvent bank in a Treasury inspired liquidity crisis (a life ring for JPM's strategic and intended benefit).....hence WMI the parents filing Chapter 11 (not 7) and shown in WMI's earliest BK filings. $32B in assets and $11B in liabilities - AFTER, the WAMU receivership.
As there are significant assets above liabilities (I haven't event started with the mortgages yet), JWW's research into FDIC bid requirements, is imo completely plausible.
Interesting DD! So to boil it down, the bid 'premium' was just a bonus JPM agrees to pay extra, above agreeing to buy everything it desires at book value. So, the FDIC asking price for WMB = book value + $1.9 B (the 'premium) as icing on top.
So in other words, another bidder like Citi, could've won and beat out JPM, by offering BOOK VALUE + a larger 'premium' of $2.5B (for example).
Great perspective and thanks for sharing.
Now factor in any WMI mortgage assets, and any WMBfsb assets which were not sold in the PAA........
Exactly. Well said!
Nope. The trust investors don't own the mortgage assets. The $240 Billion of mortgage assets in WMI's 2008 10-k, were only 'pledged' as collateral to trusts such as DB, never sold........big difference.
WMI and its consolidated filing entities such as WMB, WMBfsb, Thackeray, WAAC, WMMSC, etc held and own these mortgages, which were then 'pledged' to each trust.
The only liability to WMI and its consolidated filing entities, is having to swap out a non performing mortgage, for a performing one, so that the REMIC (Real Estate Mortgage Investment Conduit) investors income off the monthly mortgage payments isn't negatively affected. These investors knew what they purchased up front as disclosed in the prospectus.
DB had to file suit when the FDIC receivership of WAMU the bank, interrupted the substitution swaps of non-performing loans, for performing ones. DB had no choice but to sue for damages. Will the damages be as much as they say when vetted in Judge Collyers court? I seriously doubt it.
There is far more value in mortgage assets, whether illiquid, refi'd, liquidated, etc, than liabilities. I'll take my escrow multiple posits in CASH, MORTGAGES, or BOTH!
I'd like to think the DB suit is coming to end an end soon, then I'll really get excited
EXPUNGED. All JPM's remaining unliquidated claims as of April 28 2015, are now all officially expunged from the KCCLLC register.
As far as JPM goes, they are no longer an impediment to escrow recovery. Joining JPM in the officially expunged list, is the FDIC, Marta, and the IRS.
Happy Trails!
S = Secured GU = General Unsecured P = Priority AP = Administrative Priority
2551 S, GU EXPUNGED ~ 5/21/15
2553 S, GU EXPUNGED ~ 5/21/15
2369 S, GU EXPUNGED ~ 5/21/15
2373 S, P, GU, AP EXPUNGED ~5/21/15
2370 S, P, GU EXPUNGED ~ 5/21/15
2507 S, P, GU, AP EXPUNGED ~ 5/21/15
2382 S, P, GU, AP EXPUNGED ~ 5/21/15
2376 S, P, GU, AP EXPUNGED ~ 5/21/15
2395 S, P, GU, AP EXPUNGED ~ 5/21/15
2343 S, P, GU, AP EXPUNGED ~ 5/21/15
2377 S, GU EXPUNGED ~ 5/21/15
2384 S, GU EXPUNGED ~ 5/21/15
2790 AP EXPUNGED
Excellent find Bo!
Can you repost here your full post from BP that shows the "business combinations" in both the shareholders letter, and TanjaZ's OCC link? This is a great observation!
Great summary, btw.
On Boardpost there is only silence with regards to the OCC link you posted. I think user Useless is still active, but he didn't respond to the link directly. He prefers personal ridicule. I'm sure this evening as usual, things will pick up a bit.
I'm sure both sides have each other on criss-crossing 'ignore buttons'. We all had a major blowout over the last two weeks, lol. I think everyone is recharging for the next wave of 'issue advocacy' BS.
I know me and a few others find it a great read. Get's me fired up when more pieces of the puzzle turn up.
Yes, will do. I'm on suspension 6.0 over there, lol
"The final rule revises and reorganizes
the definition of “business combination,” § 5.33(d)(2), in several ways. First, § 5.33(d)(2)(i) now
includes consolidations and mergers of Federal savings associations with state trust companies.
Now this has not anything to do with our recent reincorporation to Delaware, ya think? ;)"
Not at all, mwahahaha. This is getting exciting!! The epic final Resolution of a solvent $300B institution coming soon......
Hey Tanja, what a great find! Are you on Boardpost? Do you mind if we repost it there?
Thanks Axel
I believe it 2000%. Just like McDonalds owns and holds most of their real estate. That franchise is more about real estate than food. Why would WAMU rent 1000's of land parcels and build bank improvements on them that they'd eventually lose to increasing rents?
A $300B WMI doesn't need to rent. WMI owned the land and building to its downtown Seattle high-rise. WMI owned the land and building to its corporate retreat Cedar Brook lodge. And that's just their 'personal' portfolio.......($240B in mortgages held in portfolio WMI 2008 10-k)
I doubt JPM "wants" to disgorge, but they have to. Per the Purchase and Assumption Agreement, JPM can pay for what legacy WAMU mortgage assets they desire. JPM can't pay for 'cash' from liquidated mortgage assets. They could could buy the remaining $38B in unliquidated mortgage assets.........
JPM is only 'servicing' a $165Billion mortgage portfolio, and $80B has been refinanced (cherry-picked by JPM and taken in-house if they're smart) or paid off through other means, and the servicer doesn't keep that cash. The cash goes to the owners of the note.
Then the question is (everyone knows what I think), who owned/owns those legacy WAMU notes? FDIC-R strips them out in "legal isolation" to protect the IDF first, before BK and creditors/claims. WMI's 2008 10-k shows $278B in mortgages assets. They can't be 10-K WMI assets if they are SOLD to another entity outside of the WMI umbrella entities. IF they sold to themselves (which they did through various subsidiaries like Thackeray, WAAC, WMMSC), they are still ultimately WMI's, and why they were listed on WMI's 10-k.
Whether one believes the mortgage assets are WMI, or WMB, WMBfsb, or a blend of all 3............ one can trace a path with various amounts of claims standing in the way first, before equity who released, gets wet. Although WMI's 2008 10-k shows $240B in portfolio held mortgages PLUS and additional $30B in MBS ready for sale = $278B.................even if use JPM's legacy WAMU servicing off-balance sheet at $80Billion CASH (ignoring the $38B in yet unliquidated mortgage assets as of 12-2014), there is plenty left over for everyone to have a major happy life changing event!
If we come to find the mortgages are solely WMI's: $80B legacy WAMU - $5Billion-ish unvetted claims left on KCCLLC register = HUGE life changing event. or,
If we come to find the mortgages are solely WMB's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMB = Huge life changing event. or,
If we come to find the mortgages are solely WMBfsb's: $80B legacy WAMU - $25Billion-ish unvetted claims left against WMBfsb = Huge life changing event. or,
If we come to find the mortgages are solely a blend of WMI/WMB/WMBfsb's: $80B legacy WAMU - $25Billion-ish in unvetted claims left against WMI/WMB/WMBfsb = Huge life changing event.
My opinion, there are no losers other than those who didn't release.
I thinks its entirely possible, very likely IMO, and I'd be very happy with that - as payment to my escrows for any illiquid assets that may come back to WMILT.
They have a symbol, but no ones selling any.