Mr Cooper Group Inc (COOP)

[jerrylev]

Re: 2) JPM, as a services, does not have to pay off the trusts off under her service by using her own reserved cash, and continues her service.

3) Number 2 exchanges her huge depositors' money to participate and finance so called online mortgages. At the present, the deposit rate is very high in the banks.



I think the same way.

Behind each mortgage, there is money that came from the old WAMU bank deposit money that JPM assumed and took over. So if a company like KKR is going to buy those WAMU mortgages that belong to us then the value of the mortgage assets is let say 10% or 5B for 50B of assets but where do the 50B cash to back those mortgages come from? KKR will have to put in 50B although they only buy for 5B. KKR is not going to put in 50B.

Enters JPM which already has 50B of deposit that came from the old WAMU.