Mr Cooper Group Inc (COOP)

[LuckyPanda]

CB, in your opinion is the loan portfolio in safe harbor in runoff mode or is JPM required to replace loans that have been refinanced or paid off?

For example, if the portfolio started at $300 billion but $100 billion of loans have been refinanced or paid off during the last 9 years, is JPM required to replenish those loans with new ones?

My concern is that the portfolio is required to pay back 1.9% interest to the wamu deposit base that JPM acquired...and overtime as the portfolio in safe harbor gets smaller, that will start eating into the profitability of the portfolio unless JPM replaces to paid off loans with new ones.


I guess the other possibility is that once a loan has been paid off, the portfolio hands back the principle back to JPM to "pay off" the deposit base and then JPM at that point is responsible for redeploying that deposit principle and is now responsible for that 1.9% interest cost.