A good time to do some numbers relating to this 9-year old saga:
At the time of OTS taking over WMB on 9-25-2008 and passing on to FDIC,
financing statement reported on WMB:
Total loans servicing: $689.7B
In-house loans: $247B
Servicing for others: $689.7B-$247B=$442.7B
Now we revisited JPM's loan servicing report :
Growth in loans 91% to $1.17T
It means that $1.17T/1.91 = $0.6126T($612.6B) increase.
$689.7B vs $612.6B
Loan servicing is a very safe and lucrative business. Banks will try to keep this privilege even for loans secured in SPE observing rules of legal isolation.
A simple rule, you don't want to hand over these rights to other banks and look at them growing bigger and bigger and be eaten up by these sharks some day, being sad not be able to forget "Project West".
So, JPM will naturally take all $689.7B or most of these servicing rights.
Anyway, taking off various ending to the loans including paying off, writing off, hiding off ..............., increase of $612.6B by JPM was reasonable, not excluding loans cultivated by JPM herself.
So, trying to differentiate and figure out how much were kept in safe harbor in FDIC Receivership and legal isolation in WMI, WMIIC bankruptcies, I bet you will agree with me: very complicated and difficult for outsiders like us.
Still there are reasonable ways ......
Taking $612.6B and discount 15%(10% should be more accurate) as a conservative stand is quite reasonable, it comes up with $520.71B that should be captured from WMB.
This "may not be" all owned by "WMI". So a further step:
Just assume, 20%(10-15% should be good numbers) of this amount to be considered serviced by WMB and really... really sourced outside the "WMI families":
$520.71B x 0.8 = $416.57B (in SPE and others)
$400+ billions dollars of loans and other assets. Har.......so ... quite reasonable for A&M to be very busy and enjoy their digging here and there and making about $2M a year.
Please verify yourself with a Large calculator to figure these big Green numbers. Your own guess should be more appropriate.
Congratulations to all escrow holders!
$$$ is coming by year end 2017 to your mail box. (Hopefully by 9-25-2017, the 9th anniversary.)
Make sure it has a lock; more and more mail theft cases in the US neighborhood.
Oh .. one more thing..... quite a WaMu thing to think of the needy... charity and sharing bring and multiply happiness.... consider Project Charity.
JMHO
sharing4u
