Mr Cooper Group Inc (COOP)

[CBA09]

Ref: I have my own views as per the limited value of the "Retained Assets" but would like your take on same. See post# 500809 for the relevant links and page numbers.

I have read Post - 50089 It reflects - Retained interests in mortgage loan securitizations, excluding the rights to service such loans, were $1.23 billion at June 30, 2008, of which $1.13 billion are of investment-grade.

Comments:
I am glad to see "ONLY" $ 1.23 Billion as of June 30, 2008. Aggregate of "Retained Assets" are captured within the Trusts.

Why so -
1 -Primary reason - protected from WMB creditors and not included within the estate.

2- Secondary reason - for each Dollar of Retained Assets retained by WMB a corresponding increase Capital is required.

Nothing out of the ordinary here. Secure / Sound "Retained Asset" protection via using the Bankruptcy Remote SPE's to own Residual Certificates. Common practice is to have a Residual Certificates for each the following:

1) Excess Spread Account

2) Cash Collateral Account

3) Collateral Investment Account

4) Subordinate Securities.

In addition the Residual Interest maintained by WMB often times there is a provision with the PSA to pledge back to the Trust it's Residual Interest if insolvency is triggered.