Mr Cooper Group Inc (COOP)

[hotmeat]

If you look at CBA's last post he makes two clear distinctions.....

1) Bankruptcy assets liquidated by the LT will be split 75/25

2) Safe Harbor/Non-bankruptcy assets will be shared according to Priority rules. That means once ALL Prefs are made whole + interest, the rest goes to Commons. We are looking at approx $9-$12B necessary to fully satisfy Prefs before Commons see a dime. The caveat here is that how Safe Harbor assets are treated is governed by the respective Trust's Pooling and Servicing Agreements (PSA). In addition he stated that WMI is the ultimate owner of ALL estate's assets, both WMI's and it's subsidiaries.



Now to my interpretation of this...........

IF the PSA's declares WMI to be the recipient of Trust cash residuals this would mean the WMILT, as the sole successor to WMI, is rightfully entitled to that cash. The Trust assets will remain protected from any interference and will run it's course till it folds. The cash that the LT receives is free of any Safe Harbor issues and can be utilized accordingly. Safe Harbor is to protect assets from bankruptcy Creditors, i do not believe it applies to the resulting cash yields to the beneficiaries. If the LT closes the bankruptcy case i believe even the Safe Harbor assets cash yields will be also split 75/25.

I believe that upon filing for bankruptcy, distributions of the Trust cash residuals to WMI ceased and are presently being collected and stored in Escrow accounts. This is what A+M is being paid to manage and the FDIC/JPM are holding onto for the benefit of the WMILT.