Mr Cooper Group Inc (COOP)

[wwhatthe]

Part 2 of 2… Just a little Research and all IMHO…

Statement of Assets & Liabilities in Liquidation (unaudited) (link at Bottom)

Instead of a balance sheet and income statement, a Statement of Net Assets in Liquidation and Statement of Changes in Net Assets in Liquidation is used…

From the bottom of page 1
Total Liabilities and Net Assets/(Deficit) $ 1,942,656,004

This section adds up the Total Liabilities and Net Assets…

It takes all the recorded cash allocated to the liabilities (not including the new prepaid Liquidation Expenses) and adds it to all the cash received from the sold Assets…

No un-liquidated Assets or un-proven liabilities are included… the cash has to be physically there at the FDIC in order to be received and recorded.

Then the cash $ 1,942,656,004 is sent to the Cash and Investments accounts in order to generate interest/income for the WAMU Estate…

Here in this next section, we add up all the liabilities…

Liabilities (Note 5)
Administrative Liabilities
Accounts/Notes Payable $ 817,363
Suspense/Escrow Accounts $ 49,252,013
Due to FDIC for Service - Billed Expenses $ 386,083
Due to FDIC for Borrowed Funds $ 3,381
Estimated Litigation Losses - Probable (Note 7) $ 0
Other Contingent Liabilities $ 0

Subtotal - Administrative Liabilities $ 50,458,840

Proven Depositor/Creditor Claims
Due to FDIC for Subrogated Deposit Claims $ 0
Uninsured Deposit Claims Due Others $ 0
Other Creditor Claims $ 0
Estimated Interest on Claims (Note 6) $ 0

Subtotal - Proven Depositor/Creditor Claims $ 0
Other Claims
Estimated Federal Income Tax Liability (Note 10) $ 0
Other Subordinated Obligations $ 0
Liabilities at Inception – Unproven $ 13,784,603,449

Subtotal - Other Claims $ 13,784,603,449

Total Liabilities $ 13,835,062,288

Here we have Total Liabilities $ 13,835,062,288 (the last digit should be a 9 not a 8)

But at this point in time… For Period Ending: December 31, 2008 the $ 13,784,603,449 in Liabilities at Inception are Unproven and are not received or recorded… So the $ 13,784,603,449 is not added to the Total Liabilities and Net Assets $ 1,942,656,004
Which also means it’s not sent to the Cash and Investments accounts.

Only the Subtotal - Administrative Liabilities $ 50,458,840 are received and recorded at this point in time… So… only the Administrative Liabilities $ 50,458,840 are added to the Total Liabilities, in the Total Liabilities and Net Assets $ 1,942,656,004…



The next Section adds up all the Assets
From the bottom of page 1…

Net Assets/(Deficit)
Net Assets /(Deficit) At Inception $ 26,430,109,191
Premiums Received / (Paid) at Resolution $ 1,888,000,000
Asset - Related Equity Adjustments (Note 8) ($ 40,214,712,639)
Liability/Claims-Related Equity Adjustments (Note 8) $ 0
Income / Loss of the Liquidation Since Inception $ 4,197,164

Total Net Assets/(Deficit) ($11,892,406,284)

This list of 5 items are all Assets… to get the total amount of Assets… we just add up all the items… there’s no such thing as a Debt Asset or negative Asset… so… an item will either have many Assets or zero Assets… Assets Deficit are Assets known to exist but are Unrecorded. These assets are deemed discovered and will be recorded when they are recognized and received…

The first item on the list, item #1…
Net Assets / (Deficit) At Inception $ 26,430,109,191

This report is from 09/25/2008 to December 31, 2008. Which is only the first 98 days…

These are Assets that have been moved from the Inception Balance column over to the Current Balance column… because they’re in the process of being liquidated…

Transactions are recorded when cash is received.

These are the first $ 26,430,109,191 in Assets that are in the process of being liquidated… these Assets are not recorded until after the FDIC receives the cash from the sale… at this point in time the sale was in progress… (Sale pending)… this transaction was not recorded yet… so this is not added to the Total Liabilities and Net Assets $ 1,942,656,004.

The next item, item#2…
Premiums Received / (Paid) at Resolution $1,888,000,000

This is the Bid Amount that JPMC paid with the Initial Payment,
Initial Payment = Bid Amount + Required Payment
$1,938,000,000.00 = $1,888,000,000.00 + $50,000,000.00
This amount was received and recorded… so the $1,888,000,000 is added to the Total Liabilities and Net Assets $ 1,942,656,004

The next item, items#3 and item#4…
Asset - Related Equity Adjustments (Note 8) ($40,214,712,639)
Liability/Claims-Related Equity Adjustments (Note 8) $ 0

From page 3…
Notes to Financial Statements:
Note #8 is in regard to item #3 and #4…

For item #3, “Assets”… it reads like this…
8. Non-Cash Adjustments:
“Unrecorded assets determined to have existed as of the institution's failure are deemed discovered assets and are recorded as non-cash equity adjustments”

Non-cash equity… These are non cash items that have cash value… They would be the value of the tax saving from the operating expenses which include writing off of Assets like depreciation and amortization which are realized in the future through tax returns… these are Assets that exist but are currently unrecorded Assets…

At this point in time, December 31, 2008 this amount has not been received and not recorded… but noted as discovered assets … so the $40,214,712,639 is a deficiency and not added to the Total Liabilities and Net Assets $ 1,942,656,004.

Note #8 is in regard to item #3 and #4…

For item #4, “Liability/Claims”… it reads like this…
8. Non-Cash Adjustments:
“Unrecorded claims determined to have existed as of the institution's failure are deemed discovered liabilities and are recorded as non-cash equity adjustments”

In this section, were trying to add up all the cash money in Assets and the cash money allocated to the non-cash Liability/Claims… there are $ 0 non-cash Liability/Claims…
No amount was allocated to any tax bill… or non-cash Liability/Claims… and so… no amount was added to the Total Liabilities and Net Assets $ 1,942,656,004.

This next item… item#5…
Income / Loss of the Liquidation Since Inception $ 4,197,164

After receiving $ 6,189,406 in interest/income from the initial $1,938,458,840 in Cash and Investments from the Cash and Investments accounts…
This is what’s left over after paying the new Liquidation Expenses of $ 1,992,242 for 2008…
If we take… Total Liquidation Revenues $ 6,189,406… and when we subtract the new Liquidation Expenses $ 1,992,242 we get… $ 4,197,164

This amount is income and was received and recorded… so the $ 4,197,164 is added to the Total Liabilities and Net Assets $ 1,942,656,004.

Total Net Assets/(Deficit) ($11,892,406,284)

If we add up all the Assets from this list of Assets…
We get a Deficit of ($11,892,406,284)

This would give us a snapshot of the current status of the Liquidation.
Some of the amounts are estimated then reviewed and restated.

As the Liquidation progresses the Unrecorded Assets, become recorded Assets… and the Deficits reverse and become recorded and received Assets…

The ($11,892,406,284) tells us we have Assets that have not been received and are not recorded… if we add up what’s on the list we get…

$ 26,430,109,191 currently in liquidation, not received and not recorded
$ 1,888,000,000 received and recorded
($ 40,214,712,639) not received and not recorded… noted as discovered assets
$ 4,197,164 received and recorded
($11,892,406,284)

You can add the ($ 40,214,712,639) as a -$ 40,214,712,639 then disregard the negative sign in your answer… to get ($11,892,406,284)
The ($11,892,406,284) is not a Debt… These are Assets that exist but are currently unrecorded Assets…

If… At this point in time…
The $ 26,430,109,191… had been liquidation… and the ($ 40,214,712,639) had been received and recorded… then we would have…

$ 26,430,109,191 received and recorded…
$ 1,888,000,000 received and recorded…
$ 40,214,712,639 received and recorded…
$ 4,197,164 received and recorded…
$ 68,537,018,994

This amount would be the total Net Assets and would be added to the total Liabilities.
We would have… Total Net Assets $ 68,537,018,994 plus Total Liabilities $ 50,458,840
For a… Total Liabilities and Net Assets $ 68,587,477,834
This amount would be sent to the Cash and Investments accounts in order to generate interest/income for the WAMU Estate…
The top of this page would be restated to look like this…

Assets
Cash and Investments, $ 68,587,477,834

As we can see… When Assets are liquidated… and Assets are recognized… the Cash and Investments balance gets bigger…

All IMHO…
The maximum amount that this amount can be is the Book Value of the WAMU Estate ($ 307 Billion Dollars)… Times the average interest rate of the Cash and Investment account, times 9 years… minus the, “about $ 7 Billion Dollar settlement”, minus the total amount of the Administrative Liabilities and minus the total amount of the prepaid Liquidation Expenses… $ ???,000,000,000

If the Administrative Liabilities and prepaid Liquidation Expenses are included in the, “about $ 7 Billion Dollar settlement”… Then…

The maximum amount that this amount can be is the Book Value of the WAMU Estate ($ 307 Billion Dollars)… Times the average interest rate of the Cash and Investment account, times 9 years… minus the, “about $ 7 Billion Dollar settlement”… $ ???,000,000,000

In this last section… The column titled “Inception Balance”…
The top part of the list is obviously … A list of all the Assets in liquidation

Subtotal - Assets in Liquidation $ 298,791,522,367
Total Assets $ 298,791,522,367

Below this we’re still trying to add up all the liabilities and all the cash from the Assets, in order to get Total Liabilities and Net Assets…

$ 26,430,109,191 in Assets are moved to the “Asset at inception” row, in order to be liquidated and turned in to cash Assets…

The remaining $ 272,361,413,177 in Assets are in the “Liabilities at Inception – Unproven” row… Here these are Unproven Liabilities until there turned in to cash…

So… if we add up the Liabilities and the Assets we get…
Total Liabilities $ 272,361,413,177 plus the Total Assets $ 26,430,109,191 which equals to…

From the Bottom of page 1, right side.
Total Liabilities and Net Assets $ 298,791,522,367

This is the $ 299 billion Dollars in assets that the FDIC was referring to in the… CFO Report to the Board…

”Excludes WAMU with total assets of $299 billion and zero estimated losses to the DIF” (Deposit Insurance Fund)

So… this document would give us a idea of how many Assets still need to be liquidated ($ 272,361,413,177) and a idea of how many are currently being liquidated ($ 26,430,109,191)…

The main purpose of the document is to give us a Snapshot or a report on the current status of WASHINGTON MUTUAL BANK’s Liquidation… ending December 31, 2008.

I wish we had the 2017 copy…

All IMHO…

With all due respect, and thank you all for all of your due diligence.

Stay safe… Stay healthy

GLTA…

Jiminy…
Jiminy Christmas…

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

Statement of Assets & Liabilities in Liquidation (unaudited)
The Initial Payment (paid by JPMC)… my post # 429824