Mr Cooper Group Inc fka COOP

[tanjazielman]

Thanks Ron! In looking for a summary judgement motion, I stumbled upon this (homeowners vs. JPM regarding foreclosure fraud with WaMu MBS trusts):

REMICS
30. Real Estate Mortgage Investment Conduits (hereinafter ?REMICS?) were created
in 1987 as a tax avoidance measure by Investment Banks. The REMIC is referred to in the world
of finance as an SPV (Special Purpose Vehicle), or SPE (Special Purpose Entity.).
31. REMICs are investment vehicles that hold commercial and residential mortgages
in trust and issues securities, in the instant case, a Mortgage-backed security, representing an
undivided interest in these mortgages.
32. The trustee for the Trust has sworn under oath with the Securities and Exchange
Commission (?SEC,?) and the Internal Revenue Service (?IRS,?) that as a mortgage asset ?pass
through? entity, it cannot own the mortgage loan assets in the MBS as it would then be taxed on
the interest earned from the Note.
33. This allows the Trust to qualify as a REMIC rather than an ordinary Real Estate
Investment Trust (?REIT?). As long as the MBS is a qualified REMIC, no income tax will be
charged to the trust.
34. To avoid double taxation, under Internal Revenue Code 860, Owners loan was
placed in a Special Purpose Vehicle (?SPV?) Trust so that only the shareholders would be taxed
and therefore, the shareholders are the real parties in interest.
35. Moreover, because of IRS code 860, the Trust is not the real and beneficial party
in interest because the REMIC does not own the Note, the shareholders do.
36. By distributing the tax liabilities to the shareholders, the REMIC has also
distributed the parties in interest.

(....)

The Servicer, first WAMU and then Chase, in its capacity as successor in interestto WAMU, were merely administrative entities which collected the mortgage payments andescrow funds.

44.

Moreover, if Chase were to have a financial stake in the mortgage loan, the MBSTrust would lose its REMIC pass-through tax status.

So shareholders in the SPV's are the real creditors, and would pay income tax when receiving distributions....

Hmmm... According to Globic and Deutsche only 669 million dollar would be distributed to these "investors".

What if WMIIC (WMI Investment corporation, later merged into WaMu 1031 exchange and now DISSOLVED maintained the majority of the equity in these "SPV's (ie. Retained Earnings, also known as shareholder capital)?

I mean, Deutsche alone represented 165 billion in Mortgage Trusts.

And with the former WMB entities now merged into JPM, there is no former WMB entity left in the WMI tax group.

Summary judgement motion soon?