Wednesday, September 13, 2017 3:29:19 PM
100 % spot on!
The nature of securitization makes is abundantly clear the Lion's Share of Revenue is over it's amortized life. While the originator WMB would only book a gain it's generally the Financial Holding Company (FHC)- WMI having contractual rights collecting "Ongoing" Revenue / equity from undistributed income from within these SPE/Trusts.
Example:
1) WMB, in a true sales accounting, would sell pools of loan receivables to a SPE #1. Hence book a gain ( difference from loan receivables vs. cash proceeds from SPE # #1, then
2) SPE# 1 transfers the pools of loan receivables to (SPE#2 / Trust). A trust having legal ownership and control helps to solidity / make untouchable ( bankruptcy remote ) the pooled receivables. Trusts issues certificates to investors in exchange for cash. This cash is then transferred back to SPE #1 and subsequently from SPE # 1 to WMB. Hence were the gain WMB would booked from a true accounting sale.
I want to make it clear that FHC's are the Gem of conglomerates. They usually collect the revenue and disperse their non participation revenue portions according to percentages within formal agreements.
Revenue comes in many forms but the bulk of a FHC's profit comes from non bank subsidiaries, (i.e., SPE / Trusts - securitizations.)
WMI was a monster securitization machine. So see what WMI may have been making based on Peer comparison. The net income of Financial Holding Companies would be @ 7% - 8% of respective avg equity capital. So if WMI had an average equity capital of 25 Billion the yearly net income would be 1.75 Billion based on 7%.
For those interested one can go to:
https://www.ffiec.gov/nicpubweb/nicweb/FinancialReport.aspx?parID_RSSD=3828036&parDT=20170630&parRptType=BHCPR&redirectPage=FinancialReport.aspx
Recent COOP News
- Mr. Cooper Group Reports First Quarter 2024 Results • Business Wire • 04/24/2024 11:00:00 AM
- Mr. Cooper Group Announces Two New Senior Leaders • Business Wire • 04/23/2024 01:00:00 PM
- Mr. Cooper Group Inc. to Discuss First Quarter 2024 Financial Results on April 24, 2024 • Business Wire • 04/05/2024 03:37:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/11/2024 09:34:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 11:05:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 11:04:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 11:03:04 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 11:01:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 10:59:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/26/2024 09:28:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/14/2024 09:15:59 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 02/09/2024 09:13:50 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/09/2024 12:00:29 PM
- Mr. Cooper Group Reports Fourth Quarter 2023 Results • Business Wire • 02/09/2024 12:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/01/2024 09:30:02 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/30/2024 09:26:40 PM
- Mr. Cooper Group Inc. Announces Pricing of Offering of $1 Billion of Senior Notes • Business Wire • 01/29/2024 11:02:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/29/2024 12:55:56 PM
- Mr. Cooper Group Inc. to Discuss Fourth Quarter 2023 Financial Results on February 9, 2024 • Business Wire • 01/11/2024 09:55:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/09/2024 09:00:53 PM
- Mr. Cooper Group Appoints Mike Weinbach as President • Business Wire • 01/09/2024 09:00:00 PM
- Meta CEO Sells $428 Million in Shares Since November, AMC Hits New Record Low, and More • IH Market News • 01/04/2024 09:51:01 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/02/2024 09:19:20 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/29/2023 08:45:45 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/19/2023 09:08:37 PM
FEATURED Cannabix Technologies Launches New Compact Breath Logix Workplace Series and Prepares for Delivery to South Africa • May 7, 2024 8:51 AM
Moon Equity Holdings, Corp. Announces Acquisition of Wikolo, Inc. • MONI • May 7, 2024 9:48 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM