Mr Cooper Group Inc fka COOP

[Dmdmd2020]

Excerpt from my post on April 05, 2018 (Post# 515443):

"On a previous post I had on boardpost.net as of August 23, 2014:

https://www.boardpost.net/forum/index.php?topic=6028.msg75692#msg75692

Link for WMB :

file:///C:/Users/penta/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Downloads/Washington%20Mutual%20Bank%20TFR%20June%2030%202008.pdf

Link for WMB Fsb:

file:///C:/Users/penta/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Downloads/Washington%20Mutual%20Bank%20FSB_.pdf

"iPrelude...thank you for the above links. I tabulated some important asset figures according to the two above links.

Per OTS as of 30Jun2008 (In Thousands)


WMB WMB, FSB

Cash, Deposits & Investment Securities $17,316,903 $7,160,335

Mortgage-Backed Securities $18,896,245 $16,877,894

Mortgage Loans $222,681,859 $8,644,219

Nonmortgage Loans $11,783,070 $11,898,262

Repossessed Assets $1,531,807 $253

Real Estate Held for Investment $5,185 $0

Equity Investments Not Subject to FASB Statement No. 115 $5,493,079 $676,707

Office Premises and Equipment $2,542,547 $8,641

Other Assets $26,770,919 $781,696

Total Assets $307,021,614 $46,048,007


CONCLUSIONS...IMO:

1) The OTS fact sheet that was published as of 25Sep2008 (which stated assets = $307 billion), was only for WMB and it did not include WMB, FSB.
2) The St. Louis Fed's number of $350 billion for "WMB, FSB" assets was for the total assets of WMB + WMB, FSB. ($307,021,61 + $46,048,007 = $353,069,871)
3) I am more inclined to believe the $350 billion published by the St. Louis Fed as of 2010.
research.stlouisfed.org/publications/review/10/09/Aubuchon.pdf
Table 2 on page 10

4) Per the 2009 JPM Annual Report:

files.shareholder.com/downloads/ONE/0x0x362439/a51db960-bda2-4e30-aacd-3c761b81ba75/2009_AR.pdf

PDF Page 29/260:

"Our fortress balance sheet enabled us to buy
Bear Stearns in March 2008, adding $289
billion in assets; then we acquired Washington
Mutual just six months later, adding a further
$264 billion of assets."

JPM claimed on their 2009 annual report that they acquired $264 billion of WAMU assets as of 25Sep2008. Thus $350 billion - $264 billion = $ 86 billion (residual in FDIC-R)"

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IMO....Conclusions (as of April 05, 2018):

1) Total WMI/WAMU (WMB + WMB Fsb) loan originations from 2000-2008 is $1.8479 Trillion

2) Total Assets from MBS beneficial interests owned by WMI/Escrow Marker Holders

$18.896245 billion + $16.877894 billion = $35.774139 billion

$35.774139 billion x 3% annually compounded x 9 years = $46.677137 billion (bankruptcy remote)

3) Total Mortgage Loans under WMI (WMB + WMB Fsb)

$222.681859 billion + $8.644219 billion = $231.326078 billion

$231.326078 billion x 3% annually compounded x 9 years = $301.828063 billion

If one believes that a Final Payment from JPMC needs to compensate for the mortgage loans, then JMPC would have to pay $301.828063 billion less $1.9 billion (Initial payment from the Purchase & Assumption Agreement)"
___________________________________________________________________________

IMO...My conclusions as of May 23, 2018:

1) IMO.. JPM did not pay for all of the $264 billion in WAMU assets for a mere $1.9 billion. BUT...for purposes of this post, I'm going to assume that they did.

2) Therefore, if you believe that the numbers from the St. Louis Fed are correct (2010) and the JPM 2009 annual report, then $86 billion in WAMU residual assets are within the FDIC-R :

"JPM claimed on their 2009 annual report that they acquired $264 billion of WAMU assets as of 25Sep2008." Thus $350 billion - $264 billion = $ 86 billion (residual in FDIC-R)

3) Now, if we assume that $86 billion is controlled by the FDIC-R:

$86 billion - $14 billion (WMB Bondholders' claim) - $2.3 billion (DB settlement) - $35.77 billion (WMI beneficial interests in MBS Trusts which are bankruptcy remote) = $33.93 billion

4) IMO...WMI Escrow Marker Holders' recovery:

a) $33.93 billion from FDIC-R residual assets x 3% compounded interest x 9 years = $44.27 billion

b) $35.77 billion from beneficial interests in MBS Trusts x 3% compounded interest x 9 years = $46.67 billion

Total = $44.27 billion + $46.67 billion = $90.94 billion when the FDIC-R in closed and resolved.

When will the FDIC-Receivership be resolved? I don't know, but I hope we get some recoveries piecemeal, if not in a lump sum by the end of 2018.