Mr Cooper Group Inc (COOP)

[wwhatthe]

Just a little Research and all IMHO…

“ BOOK VALUE FOR EVERYTHING “Total Assets from the FDIC…

No one really knows how this will pan-out, but it’s interesting to read some of the guesses… Here’s my guess…

Obviously, In an Asset minus liability calculation all we need is the total Assets and total liability then all the complicated and small stuff wouldn’t matter…
The only real source is the FDIC…Total Assets Minus Total Liability…

In 2008 the FDIC took possession of all of WAMU’s Assets, then created the WAMU receivership-the FDIC-R. It placed just enough Assets at the FDIC-R only to pay off all of WAMU’s debt, which would at the same time wipe out Equity.

This would leave the rest of the Assets at the FDIC-Corporate.

The FDIC-R is designed to have zero money left over, after everyone is paid in full. There’s currently only 2.7 Billion Dollars left at the FDIC-R… Any report from the FDIC-R is about the Assets at the FDIC-R and not the Assets left at the FDIC-Corporate.

Thanks to LG’s research… On a Memorandum to the FDIC Board of Directors, Dated November 5 2015, Subject: Third Quarter 2015 CFO Report to the Board.

It states that the FDIC-Corporate currently has $299 Billion Dollars in WAMU Assets. I believe it’s a Significant Find. Not only does it confirm that WAMU Assets are not reported with FDIC normal corporate activities, But states that the Assets are still there at the FDIC Corporate…Whether their all cash Assets or a mix of Assets is undetermined.

IMHO I think its Obvious that these are the same Assets in the inception document from 9/25/2008. (Link at Bottom) There is no Schedule 3.1a Asset list, but if there were, this would be it… Which would be, Totals from each category off of the Asset list…Which are…

Securities $5,658,961,475
Consumer Loans $16,197,587,675
Commercial Loans $2,284,976,331
Real Estate Mortgages $191,532,334,532
Other Assets/Judgments $26,712,206,061
Owned Assets $3,964,153,726
Net Investments in Subsidiaries $52,441,302,567

Total Assets $298,791,522,367

Total Assets $298,791,522,367… and if we round up… $299 BILLION DOLLARS
The same $299 Billion in Assets from the FDIC’s Third Quarter 2015 CFO Report

The $52.4 Billion in Subsidiaries would be the assets with in Assets, which all belong to the Holding co /WAMU ESTATE. The Subsidiaries assets with all of the other Assets on the list would be “everything”… Total Assets $299 BILLION DOLLARS

“Assets on a Balance Sheet are at BOOK VALUE”…

This would mean the $299 BILLION is “ BOOK VALUE FOR EVERYTHING “

In my opinion all cash… This is why…
Most of the Assets are from Real Estate Mortgages. The underlying property was bought and paid for in cash by the Bank and then mortgaged to the Homeowner…Because of the P&AA, (Purchase & Assumption Agreement), (Link at Bottom) an inquiring investor/JPMC would pay Book value for this Mortgage/Property…

“Book Value ignores anything that can’t be Sold”…Like Home Owner’s Equity and Pledged Payments going to MBS Investors

For Example Let’s look at one Mortgage. Let’s say it’s a $1,000,000 Property with a $1,000,000 Mortgage and the Homeowner has paid down $200,000 on the Mortgage…So in a way, the Homeowner owns this part of the Mortgage or 20%…

And let’s say $300,000 in future payments are pledged to MBS Investors.
The MBS Investors paid $300,000 to the Holding co./Bank for the Future Payments or income stream from the mortgage. This creates an obligation to the MBS Investors and is over seen by Deutsche Bank as Trustee… Which is… When the Future Payments come in from the homeowner, they are to go to the appropriate MBS Investor…So in a way, the MBS Investors own this part of the Mortgage or 30%…

“Book Value ignores anything that can’t be Sold”…Book Value would be…
$1,000,000 - $200,000 (Home Owner’s Equity) - $300,000 (Pledged Payments) Which Equals $500,000 or 50%…
So the inquiring investor /JPMC would Pay $500,000 or (50%) and Assume the Obligation to the MBS Investors…

JPMC did not pay for the 30% part of the Mortgage that the MBS Investors own… Its this 30% part of the Mortgage or the $300,000 in future Pledged payments from the homeowner, that will go to pay the MBS Investors…

JPMC as Servicer will process the payments and charge a fee…They will Also Take their 50% part of the mortgage and create their own Mortgage Backed Securities and sell them to new MBS Investors…This will allow them to recoup their $500,000 and start the process all over again. All so they can charge more fees.

We can see that the MBS Investors paid $300,000 to the Holding Co. /Bank (WAMU ESTATE) for the Future Mortgage Payments… So they’re entitled to $300,000 from the Mortgage income stream or Homeowners Payments… The MBS Investors do not own the Mortgage. The Mortgage was Sold to the inquiring investor/JPMC at Book value, $500,000, and the inquiring investor/JPMC Assumed the Financial Obligation /Liability to the MBS Investors…at Book Value $300,000… The Assumed Financial Obligation doesn’t cost JPMC anything, But as servicer, it allows them to collect a fee for processing the payments…The money to pay the MBS Investors is coming from the Homeowners Pledged payments. Not from JPMC or the $299 Billion in WAMU Assets…

The pledged payments/Mortgage is now with the inquiring investor /JPMC…it’s JPMC’s Obligation now…When the Pledged payments come in., JPMC will make sure they go to the appropriate MBS Investor. It’s the MBS Investors who are the Purchaser and owner of the Mortgage Back Securities…

The Homeowner also has a Home Owner’s Equity Book Value of $200,000…

So for the Holding Co. /Bank (WAMU ESTATE), The Mortgage is now an All Cash Asset of $1,000,000 …$500,000 From the inquiring investor/JPMC, Plus $200,000 From the Homeowner, Plus $300,000 From the MBS Investors, Which is Book Value $1,000,000…All Cash. And is now part of the $299 Billion Dollar Total…

The $299 Billion in Assets include the sale of the Mortgage Back Securities and the Mortgages. Along with all of the other Asset… … This is a whole Bank Purchase for JPMC….
Everything SOLD to JPMC and all of the Mortgage Back securities sold to MBS Investors, along with the Homeowners paying dawn their part of the mortgage and anything else sold, would total up to $299 Billion Dollars… which would be all cash…

So after all is said and done, I believe Total Assets will stay at $298,791,522,367

Or if we round up, Total Assets $299 Billion Dollars…this is from the FDIC…

Now…
Total Liabilities/Debt from the FDIC…

Every MBS mortgage portfolio has a reserve or reservoir where mortgages are kept…When a Mortgage fails, one is borrowed from the reserve, or is replaced by one from the reserve. The failed Mortgage is then foreclosed on and the property resold…Creating a new mortgage…the new mortgage replaces the borrowed mortgage or is put back into the reserve… This is the replace or repurchase obligation…

This post is a little long…I’ll try to be as succinct as possible…

IMHO, The repurchase obligation, Which is about $6 to $8 Billion Dollars, wouldn’t take away from the $299 Billion Dollars in WAMU Assets…The FDIC-R has $2.7 Billion Dollars left at the receivership, I’m pretty sure that’s all they can negotiate with and once that’s gone there’s no more…They told the bankruptcy court that’s all there is…so that can’t be changed…


The FDIC web site shows Total Liabilities of $13,835,062,288 or 13.8 Billion Dollars…
And if we add for court cost, 100’s of lawyers and Accountants, Consultants, and Advisors…
I think a guess of $16 Billion for Total Liabilities would be a fair guess…

So Total Assets of $299 Billion Dollars,
Minus Total Liabilities of about -$16 Billion Dollars
Equals $283 Billion Dollars…All Cash, and Book Value…

So it’s my Opinion and unfortunately with little communication from the FDIC, I believe there’s $283 Billion Dollars coming back to Equity Escrow… Plus interest…

Capped and uncapped….
If anyone can post anything they have on capped or uncapped in regard to a classes claim, I would appreciate it…I understand the idea, I just don’t see it anywhere in the Purchase & Assumption Agreement or the GSA…TIA

What I do know is the PIERS Claims are capped at $10.50. Which is a small portion of there Claim on account…So if they’re uncapped then they would received there full Claim on account…Applying the same logic to the prefers…The Preferred are uncapped, so they would receive there full Claim on account…Although there’s no reason why they would be capped…

Also…respectfully speaking.
If you can point to, anywhere in PLAN 7 that talks about the 75/25/split and how the Preferred Equity will receive 75% of all that remains after Tranche 5… I would appreciate that too … thx.
All I see is the treatment of the voting rights and pro rata shares in the new company common stock… and the shared 75%, 25% Distribution of Tranche 6 between claims on account of Preferred Equity Interests and Common Equity Interests, respectively.

From what I see…
The P&AA States “ No class is projected to recover more than one hundred percent (100%) on account of the claims”…

“P” have a “on account claim” of about $3,000,000,000 Plus Interest
“K” have a “on account claim” of about $455,000,000 Plus Interest

From page 59, of the WMI LIQUIDATING TRUST Agreement. (Link at Bottom)

It states…
(11) Holders of Preferred Equity Interests and Common Equity Interests will be issued Liquidating Trust Interests in Tranche 6 on Account of those interests when Tranche 2 through Tranche 5 Liquidating Trust Interests have been satisfied in full.

Further, Distribution to Tranche 6 will be shared 75% and 25% pro rata between claims on account of Preferred Equity Interests and
Common Equity Interests, respectively.

IMHO, The “Distribution between claims on account” implies that the Distribution to Tranche 6 will be Divided until the Preferred Equity Interests is recovered and has been satisfied in full…then after that, what remains will fall to Common Equity Interests…
“ No class is projected to recover more than one hundred percent (100%) on account of the claims”…

The Preferred Equity Interests is $1000.00 per share, which is a Total of $3,000,000,000 plus Interest…

WMIH is entitle to 2.5% of all litigation winning or proceeds from Lawsuits, like the lawsuit against the former Directors and Officers. I don’t see WMIH receiving any Distribution from the WMI Liquidating Trust because this money is not litigation winning or proceeds from a lawsuit…IMHO WMIH will be great on its own…

Also IMHO the FDIC has not been released because this leaves the door opened for a lawsuit against the FDIC for losses and damages, and a Breach of their fiduciary duties to maximize WMB’s Value…if successful, WMIH will receive 2.5% of the litigation winning…


With my guess of $283 Billion coming back to Equity Escrow, if we subtract the Prefers “P” $3 Billion and the Prefers “K” $455 Million, this would Equal to about $279.6 Billion coming back to the Common Shareholders…


I believe it’s the Common Shareholder who will walk away with all the spoils…

$279.6 Billion Dollars…

It’s the FDIC who states they have $299 Billion Dollars in WAMU Assets, and about 16 Billion Dollars in Debt, I don’t see any reason to dispute or oppose these amounts…there obtained from the source, The FDIC…

This is my guess, no magic or arbitrary numbers, It’s from the FDIC and my understanding of Mortgage Back Securities, Book Value and Bankruptcy Liquidation. Please feel free to post any correction, so if necessary I can re-think my conclusion…
If I’m wrong I’m hoping, with your help, this will bring forward the correct conclusion or at least get us closer… TIA

With all due respect, and thank you all for all of your due diligence.
Good Luck To All…and Congratulations to the Common Shareholders

Well…That’s just my guess…

Jimmy…
Jimmy Christmas

Inception Document
Purchase & Assumption Agreement
WMI LIQUIDATING TRUST Agreement


Just my opinion, research and curiosity…
Not intended to serve as a basis for investment in any security of any issuer. GLTA