Tracking Markers do include loan principle interests in any liquidations from refinance, repayment, or fire-sale foreclosures. WMI's 10-K 2007 reports $240B in LOANS HELD IN PORTFOLIO. Why are there loans held in portfolio which WMI and every single bank in the securitization racket held?
Because LOANS HELD IN PORTFOLIO are loans held for investment. These are the loans PLEDGED for the life of hundreds of securitization trusts. Each legally independent. Each protected by its own corporate veil.
Safe Harbor=Legal Isolation=Off Balance Sheet Treatment of everything in Securitizations. IF you no longer have $240B of HELD IN PORTFOLIO, there is no more securitization and hundreds of legally independent securitization trusts are in default. Guaranteed 110%, these trusts have ALL PERFORMED as designed since 2008 and continue to do so.
NOBODY (WMI, JPM, FDIC, your gramma, or T-rump) can give $240B in loans away, because they are legally PLEDGED and isolated to individual trusts for the purposes of a specific securitization, for a specific time frame.
Everything is frozen ice cubes in safe harbor. The loan principle, the monthly income strips, the individual independent Special Purpose Trust housing the 'PLEDGED' (lent, leased, not sold) assets, and the managing Trustee ability to disperse the cash and assets that have accumulated for 10 years while overseeing hundreds of these Special Purpose trusts in Delaware owned by legacy WMI.
Safe Harbor is designed to protect all links in the securitization chain from : bankruptcy creditors and receivership creditors. Remove a link in this chain, there is no more security - and a litigation morass to end all litigation morasses.
