Exactly. this is a subject that I don't like to touch because of the sensitivity but what happened a decade ago should be water under the bridge by now. We will never forget but carrying the hate forever is not good for our well being. Especially today is Easter. Just like with wars in the past, we should never forget the sacrifice of our veterans but at the same time we should not carry on the grudge from more than a half century ago. We drive cars made by our so called "enemies" while our friends and allies from the past may be our adversaries today.
Back to the subject of WAMU and JPM, for the last decade, JPM serviced those WAMU loans. If some belongs to us then JPM should return the interest money it collected in the last 10 years minus the service fees. Going forward then our new NSM co-owner will service those loans. And perhaps KKR will buy them because by the POR, they need to be liquidated so that cash can be returned to Escrows. Or JPM will buy them because WAMU old customers only know Chase.
Also, JPM may farm out their entire mortgage loan servicing to NSM while concentrating on the Finance aspect of financing the loans that they themselves will write but not service. I told you guys that last year, I financed my house with a little company and they farmed out the servicing to another online company. Nowadays, companies outsource anything they don't do well.
Back before POR 7 and the releases were signed, JPM didn't want us to own the Estate but give it to the Hedge Fund creditors. Why? Because shareholders may have the tendency to want their old company back while the creditors have no feelings and they only go for the money.
After POR 7 and the releases were signed then the threat from shareholders is lifted. We are now friendly to JPM. So right from the get go, it was already planned that WMIH will be part of our recovery. So I think our recovery will come in two parts: cash from LTI through the liquidation sale of our assets and WMIH shares that will appreciate.
And you know all the rich guys and guys in the financial words know each others. And so who know, KKR and JPM CEO may be friends and they may do things together, like we go fishing together with our buddy or share a vacation home with another buddy. So it is all fun and hobby for these guys. If they enjoy then we should join the party too. We may not sit at the same table with them but like guests in a wedding party, we all enjoy the same way regardless of how rich each person is.
Enough philosophy on Easter day :) Happy Easter everyone.
