Mr Cooper Group Inc (COOP)

[Dmdmd2020]

There are no coincidences in the Financial World of Mergers/Acquisitions...IMO!!




David Bonderman (TPG) and Wes Edens (Fortress)

https://www.bloomberg.com/research/stocks/private/person.asp?personId=372235&privcapId=3554707

Wes Edens...

"Previously, he served as the Chairman of Nationstar Mortgage Holdings Inc., and served as Director since July 3, 2012 until July 1, 2016."

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https://seekingalpha.com/news/3305837-nationstar-mortgage-considering-sale-bloomberg

Fortress is the majority shareholder for Nationstar Mortgage

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As of 02March2006:

IMO...Eventhough the two men and their respective companies did not do a deal together, the document below does show that they were known to each other and were pitching ideas and searching for future deals with the Washington State Investment Board.

Also present in the same meeting was Stephen Schwarzman and Kenneth Whitney of The Blackstone Group.

http://www.sib.wa.gov/information/pdfs/private/2006/030206minutes.pdf

"WASHINGTON STATE INVESTMENT BOARD Private Markets Committee Meeting Minutes March 2, 2006

The Private Markets Committee met in open public session at 9:03 a.m. in the boardroom at the Washington State Investment Board in Olympia, Washington.

Members Present:

George Masten, Chair
John Magnuson Treasurer Mike Murphy
David Nierenberg
Jeff Seely

Members Absent:
Senator Lisa Brown
Sandy Matheson

Other Board Members Present:
Charles Kaminski
Patrick McElligott

Others Present:
Joe Dear, Executive Director
Gary Bruebaker, Chief Investment Officer
Tom Ruggels, Senior Investment Officer – Private Equity
Gary Holt, Investment Officer – Private Equity
Sam Green, Investment Officer – Private Equity
Linda Buchanan, Administrative Secretary
Paul Silver, Assistant Attorney General
David Woolford, Capital Dynamics
Wes Edens, Fortress Investment Group
Stephen Schwarzman, The Blackstone Group
Kenneth Whitney, The Blackstone Group
John Canning, Madison Dearborn Partners
Jamie Gates, Texas Pacific Group
David Bonderman, Texas Pacific Group

[Names of other individuals attending the meeting are not included in the minutes but are listed in the permanent record.] "

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From my previous post on 02Dec2018 (#498242)



"David Bonderman is the ultimate WMI insider...IMO.

I will start with my conclusions first so you can keep asking yourself are they plausible or not.

IMO...My conclusions:

1) Excerpt from 1988 article: "The mortgage-backed securities, whose value drops as interest rates rise, would generate losses of about $1 billion if sold at today's prices, bank board officials estimate. However, if rates drop in the months and years ahead, the securities may eventually be liquidated at a profit. "

http://articles.latimes.com/1988-12-29/business/fi-1371_1_american-savings/2

Special Purchase Entities (SPEs) such as MBS Trusts are the true bulk and lion's share of the recoveries for Escrow Marker Holders for WMI. Recoveries via WMIH will be very small compared with the MBS Trust recoveries!!

2) The ultimate insider is David Bonderman and TPG...Olympic Investment Partners...et. al.

3) Equity Tranches/Equity Interests or residual value from the MBS Trusts are enormous when you consider that some prospectuses state that the orginator/depositor of the Trusts have to retain 25%

4) From 2000-2008, WMI Subsidiaries securitized $692 billion mortgage loans which were Bankruptcy Remote

5) Most of those MBS Trusts since 2000, might be fully resolved meaning either they were liquidated/prepaid/Re-financed and all obligations to investors are fulfilled, and residual value of 25% of those MBS Trusts are waiting for WMI (rightful owner) to distribute to the Escrow Marker Holders (i.e. Bonderman/TPG/Olympic Partners, any shareholder that released by March 2012).



My Theory: Blueprint of a legal way to untold riches!

1) Bonderman, Bass, et. al. purchase American Savings (California Savings and Loans which was in bankruptcy in 1988). American Savings had $15 billion in MBS Trusts.

What did Bonderman learn from that deal?

He learned that as interest rates dropped, the profits from the MBS Trusts increased. This is because as interest rates dropped, the probability of borrowers to prepay/re-finance increased. Once mortgages were prepaid, the obligations to investors of those MBS Trusts were paid, and the residual (Equity Tranche) was realized by the owners of the Trusts (the originators/depositors) or the ones that creates the MBS Trusts.

http://articles.latimes.com/1988-12-29/business/fi-1371_1_american-savings/2

2) Sell off American Savings to WMI in 1996. This allowed Bonderman to sit on the Board of Directors of WMI from 1996-2002.

While on the BOD of WMI, Bonderman had access to Material Non Public Information (MNPI). What was he looking for?

The size and value of all the MBS Trusts that have been created in the past and the possible creation of future MBS Trusts in the future.

Per the 2010 congressional subcommittee hearings, WMI increased the generation of MBS Trusts from 2000-2008. $692 billion worth of MBS Trusts were created. If WMI had to retain up to 25% by virtue of the Equity Tranches....simple math :

$692 x 25% = $173 billion (no interest included)

3) Bonderman, TPG/Olympic Partners et.al. infused $7.5 billion on April 07, 2008. This was weeks after the Bears Stearn collapse. Bonderman was elected to the BOD of WMI once again by virtue of the infused cash.

IMO....Bonderman TPG/Olympic Partners, et.al. controlled WMI from this point forward.

The interest rates were dropping, and if things got worse economically (and it did) then interest rates would probably drop to all time lows (and it did).

With the decrease of interest rates...the profits via MBS Trusts would increase!

4) WAMU banks were seized and WMI had to file Ch. 11 in September 2008.

5) Bonderman didn't resign from WMI until December 2008.

6) Bonderman, TPG/Olympic Partners, et.al. sole purpose was to keep control of their positions in WMI....because WMI was the rightful owners of the MBS Trusts which had up to 25% of the Equity Tranches of all the MBS Trusts.

By December 2008, the global economy was in recession, and the interest rates were at all time lows! This means that the profits from MBS Trusts were at all time highs.

7) By 2011, Walrath's court had ruled that assets via MBS Trusts were bankruptcy remote. Investors in MBS Trusts were guaranteed that they would be paid, without any problems from the bankruptcy court.

https://www.corporatetrustinsider.com/2014/11/mbs-investors-are-entitled-to-increased-bankruptcy-distributionsby-shan-haider-on-november-12-2014/

8) IMO...Bonderman, TPG/Olympic Partners, et.al. released their shares of WAMUQ and converted to Escrow Markers in March 2012.

9) JPM admitted, via their 2013 and 2014 annual reports, that there were $165 billion off balance sheet assets in MBS Trusts. As of 2014, $127 billion was liquidated and $38 billion was unliquidated,

This means that $127 billion was prepaid/re-financed/foreclosed and the residual Equity Tranche would also reap the benefits.

IMO...The rightful owner of the Equity Tranches of the MBS Trusts is WMI/WMILT and not WMIH.


$38 billion of unliquidated mortgages would be left for any entity that would buy and service these loans (IMO...WMIH would be a perfect entity)


10) Now at Thanksgiving 2017, all litigation (except WAMU ex-employee claims) have been resolved.

FDIC-R/C are in the final stages of closing the WAMU receivership.

More than 130 institutional holders have bought since emergence from CH. 11.

IMO...it doesn't matter if Bonderman, TPG/Olympic Partners, et.al. still have WMIH shares or not. They are more concerned about the recoveries from MBS Trusts, because WMIH recoveries pale in comparison to Escrow Marker recoveries via the residual Equity Tranches in the MBS Trusts.

Remember...as interest rates decrease...the profits in MBS Trusts increase!!!!!!

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Per the following link, it shows the historic mortgage interest rates from 1986 to 2016:

https://www.hsh.com/monthly-mortgage-rates.html

IMO...as mortgage interest rates decrease the higher the profits from MBS Trusts (bankruptcy remote).

An example of 30 year fixed mortgage interest rates:

As of Jan 2000 = 8.305% : WMI subsidiaries started securitizing $692 billion from 2000-2007.

As of Jan 2008 = 6.224% : WMI tried to sell itself off; JPM's offer of $8 per share was declined, and TPG's $7 billion infusion was accepted April 2008. Then Wamu banks were seized September 25, 2008.

As of Dec 2014 = 4.023%: Per JPM annual reports for 2013 & 2014, $165 billion in off balance securitized MBS Trusts. Of that total, $127 billion was liquidated and $38 billion was unliquidated.

As of Aug 2016 = 3.552%

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IMO...As interest rates decrease more borrowers will refinance and prepay their mortgages therefore increase in MBS trust profits.

As of 2014, $127 billion was liquidated out of $165 billion securitized loans.

Percentage liquidated = $127 billion / $165 billion = 76.96%

If by 2014, there were 76.96% liquidated at interest rates as low as 4.023% (Dec 2014), imagine how many more mortgages were refinanced when the interest rates are at 3.552% (Aug 2016).

When the mortgages are liquidated the MBS Trust investors are paid and so are the residual Equity Tranches/Interests (rightful beneficial owners are WMI Escrow Marker Holders).

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IMO...Conclusions as of 28Apr2018:

David Bonderman and Wes Edens has known each other since at least 2006.
I think, that even as competitors in the business world, CEOs/Chairmans of companies always do deals with each other.

I think, that Bonderman and Edens have been cooking up the WMI/WMIH/NSM deal for a long time! Long before September 25, 2008!