Mr Cooper Group Inc (COOP)

[invest1980]

BK and AZ,

You guys are getting me interested in digging into this again, but I just don't have the time right now. I may have to review the graphs i created back in 2009.

BK, I think the real question here is whether WMI the holding company is prohibited by law from investing in Mortgage Backed Securities (MBS) or not. As you state, only WMB can generate mortgages, but once packaged and securitized into MBS securities, can they be sold to the WMI holding through a financial transaction? More generally, can a bank holding company own MBS securities irrespective of what bank generated the underlying mortgages?

If the answer to this question is Yes, then I don't think we can ascertain who owns the MBS securities from the consolidated financial statements.

If Yes, Does the FDIC have the power and legal rights to seize MBS securities owned by the holding company?

I forget, what mechanics were used to steal the TPS securities? As I recall weren't they securities backed by mortgages?