Mr Cooper Group Inc (COOP)

[clawmann]

My recollection is that the run-off notes are the obligation of WMIH, not WMILT. The run-off notes are/were secured by a segregated account into which WMIH would deposit money from the run-off of the residual insurance business. WMIH was not generally liable for those notes. They were to be paid exclusively from the income generated by the run-off insurance business.

WMIH obviously made a decision to call (pay off) the run-off notes early instead of continuing to pay 13% interest; so they must have had sufficient income from the run-off insurance bus to just pay off those notes.

Does this signal that WMIH is cleaning things up in anticipation of a deal? No way to know. Maybe, maybe not.

BTW, This has nothing to do with WMILT, unless WMILT holds/held run-off notes.