Mr Cooper Group Inc (COOP)

[Large Green]

Dmdmd200, fantastic fact-finding and diligence. I will take the liberty and repost one of the best posts ever and it is from you which is great timing considering what is currently being discussed here. Thank you very much!i]

This is the crux of what those who signed timely releases have been waiting for

Sunday, 04/01/18 08:16:23 AM

Dmdmd2020

First. Happy Easter to all my fellow WMI community! It is truly a happy day!

Thanks to Tstanton, NHT, and all the rest!

Per the previous post #515441:

"However, administration of the Trust is not complete, with claims remaining
to be reconciled and certain assets remaining to be collected. Accordingly, the Trust filed a request with the Internal Revenue Service and on November 21, 2017, the IRS notified the Trust that extension of the Trust’s term will not adversely affect the determination that the Trust is a liquidating trust and ruled that the term of the Trust may be extended up to an additional three (3) years. "

IMO...The actually IRS letter is on this link dated February 23, 2018:

https://www.irs.gov/pub/irs-wd/201808004.pdf

Page 3 of 6, first full paragraph

"... The Plan provides that the beneficial interests in Trust would be distributed to certain holders of senior notes claims, subordinated notes claims, general unsecured claims, guarantees claims, preferred income equity redeemable securities claims, and holders of certain debt of Y. In addition, the Plan provides that, in the event, such claims are fully paid, the interests in Trust would be redistributed to certain holders of subordinated claims, and after such subordinated claims are paid in full, certain holders of preferred equity interests, Dime Warrants, and common equity interests."
________________________________________________

IMO...conclusions:

1) WMILT is expecting beneficial interests from
MBS Trusts (over $692 billion securitized from 2000-2008). From my previous post #504195, I calculated that WMI/WMILT/Escrow Marker Holders retained approximately 5.16% beneficial interests of all MBS Trusts assets.

$692 billion x 5.16% = $35.16 billion (not including any interest over 9+ years)

2). When will beneficial interest assets from MBS Trusts return to WMILT? I don't know, but I'm willing to wait for as long as possible...and the IRS is waiting for another 3 more years to get its taxes from it.

_______________________________________________

Dmdmd2020
Saturday, 01/13/18 05:46:09 PM

Quote from: CSNY on Today at 10:47:53 AM

I think we've discussed this before, but in case we haven't, 'R' tranches are valued at zero (see the three (3) R tranches on p. 120 of the Senate report (link below)) until some residue actually appears. There was $36B in MBS on the FDIC's balance sheet reflecting the value of these securities as of 6/30/08 so, obviously, they were not 'R' tranches. (See WMB's b/s:sidedraught.com/stocks/WashingtonMutual/Washington%20Mutual%20Bank%20TFR%20June%2030%202008.pdf which shows $18,896,245,000 in MBS; maybe someone has a link or PDF for the FDIC's WMBfsb 6/30/08 balance sheet which features $16,877,894,000 in MBS)

Both public and private certificates are assigned value in this diagram which features values associated with the tranches (i.e., 'AAA' down to 'BB', 'C', 'P', 'N-1' - 'N-4'). The $36B figure doesn't make sense unless WMI's enterprise owned tranches senior to Rs.

There's no question that the MBS were on WMI's balance sheet, which means some WMI entity owned them and -- most important -- they were available to satisfy some WMI entity's creditors' claims. It's my opinion that the FDIC would not have sold MBS to JPM, which had plenty of toxicity on its own balance sheet.

Even though the R tranches are invisible on the balance sheet there's no reason to believe they, like the more senior tranches, are part of the LT's assets and will be divided 75/25.

See p. 120 (p. 127 of the PDF

file):https://www.hsgac.senate.gov/download/report-psi-staff-report-wall-street-and-the-financial-crisis-anatomy-of-a-financial-collapse

______________________________________________

CSNY,

Thank you for bringing up this topic again!!

Per my post on December 25, 2017:


https://www.boardpost.net/forum/index.php?topic=12020.msg204458#msg204458

Per the link, PDF page 4 of 44:

http://www.globic.com/wamurmbssettlement/pdfs/DB%20WaMu%20TIP%20Notice%20to%20Holders%20re%20Distribution%20Timing%2012.11.17.pdf

"
001
Coast Federal 1992-1
002
GSAMP Trust 2005-S2
003
GSAMP Trust 2006-S1
004
Long Beach Home Equity Loan Trust 2000-LB1
005
Long Beach Mortgage Loan Trust 2000-1
006
Long Beach Mortgage Loan Trust 2001-1
007
Long Beach Mortgage Loan Trust 2001-2
008
Long Beach Mortgage Loan Trust 2001-3
009
Long Beach Mortgage Loan Trust 2001-4
010
Long Beach Mortgage Loan Trust 2002-1
011
Long Beach Mortgage Loan Trust 2002-2
012
Long Beach Mortgage Loan Trust 2002-5
013
Long Beach Mortgage Loan Trust 2003-1
014
Long Beach Mortgage Loan Trust 2003-2
015
Long Beach Mortgage Loan Trust 2003-3
016
Long Beach Mortgage Loan Trust 2003-4
017
Long Beach Mortgage Loan Trust 2004-1
018
Long Beach Mortgage Loan Trust 2004-2
019
Long Beach Mortgage Loan Trust 2004-3
020
Long Beach Mortgage Loan Trust 2004-4
021
Long Beach Mortgage Loan Trust 2004-5
022
Long Beach Mortgage Loan Trust 2004-6
023
Long Beach Mortgage Loan Trust 2005-1
024
Long Beach Mortgage Loan Trust 2005-2
025
Long Beach Mortgage Loan Trust 2005-3
026
Long Beach Mortgage Loan Trust 2005-WL1
027
Long Beach Mortgage Loan Trust 2005-WL2
028
Long Beach Mortgage Loan Trust 2005-WL3
029
Long Beach Mortgage Loan Trust 2006-1
030
Long Beach Mortgage Loan Trust 2006-2
031
Long Beach Mortgage Loan Trust 2006-3
032
Long Beach Mortgage Loan Trust 2006-4
033
Long Beach Mortgage Loan Trust 2006-5
034
Long Beach Mortgage Loan Trust 2006-6
035
Long Beach Mortgage Loan Trust 2006-7
036
Long Beach Mortgage Loan Trust 2006-8
037
Long Beach Mortgage Loan Trust 2006-9
038
Long Beach Mortgage Loan Trust 2006-10
039
Long Beach Mortgage Loan Trust 2006-11
040
Long Beach Mortgage Loan Trust 2006-A
041
Long Beach Mortgage Loan Trust 2006-WL1
042
Long Beach Mortgage Loan Trust 2006-WL2
043
Long Beach Mortgage Loan Trust 2006-WL3"
________________________________________

IMO...conclusions:

1) there were 40 Long Beach Mortgage MBS/ABS Trusts under DB Trustee prior to the date of the letter (December 11, 2017). Per the letter, distributions will not be paid prior to January 2018 but will be paid according to monthly payment schedules.

2) by searching the State of Delaware site, there only 6 Long Beach Mortgage Trusts left. Thus 36 of those Trusts were liquidated to cash, where all MBS investors will be paid (including the residual Equity Tranche/ Interests which are rightfully owned by the WMI Equity Marker Holders).

https://icis.corp.delaware.gov/Ecorp/EntitySearch/
_______________________________________

Per CBA09 post #499401:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=136770430

"Once a Trustee has discharged it signals the complete liquidation of the Trust Assets. No need for a Trustee."

Here is the full post:

"Ref: Thank you CBA09. That is what I suspected originally. Safe Harbor assets release should have been controlled by the MBS trustee. What don't I understand is how DB as trustee could be discharged from probate without WMI receiving our assets? If DB is gone, who is the current trustee of our assets?

Comment:
Once a Trustee is discharged it signals the complete liquidation of the Trust Assets. No need for a Trustee.

We no longer care about a Trustee. Are assets are protected.

Safe Harbor assets:
The "Retained Assets!" Residual Interest in such assets is represented by A Residual Certificate. Generally the first SPE within a two SPE Tier -MBS.

Like (WMMIC - SPE - Tier # 1 & SPE/Trust - Tier # 2. WMI being Parent reaps the final benefits.

Ref: 1031 Exchange - I do not believe so with Terminated Trust Assets. To be fully terminated means all obligations are satisfied to certificate holders. And, all assets liquidated to cash. "

______________________________________________

IMO...overall conclusions:

1) DB Trustee has discharged all the 99 MBS/ABS Trusts under its responsibility

2) by just taking the example of all Long Beach Mortgage Trusts under DB, 34 out of 40 Trusts were liquidated.

Liquidation percentage = 34 / 40 = 85% liquidated in cash

Assumptions:

$692 billion mortgages were securitized by WMI subsidiaries from 2000-2008.

25% retention of MBS/ABS Trusts by virtue of residual Equity Tranches/Interests beneficially owned by WMI Escrow Marker Holders

Extrapolate 85% liquidation percentage across all MBS/ABS Trusts created by WMI subsidiaries

Calculations:

$692 billion x 25% = $173 billion

$173 billion x 85% = $147 billion liquidated in cash which belongs to WMI Escrow Marker Holders

Per the following link which illustrates the ABS-15G filing as of 7-31-2017, EX-99.1:

https://www.sec.gov/Archives/edgar/data/1119605/000092963817000687/0000929638-17-000687-index.htm

Total value of MBS/ABS Trusts as of 7-31-2017 = $70,185,164,496


The remaining MBS/ABS Trusts (illiquid assets):

Long Beach Mortgage Loan Trust 2006-6 = $1,696,308,794

Long Beach Mortgage Loan Trust 2006-7 = $1,632,830,233

Long Beach Mortgage Loan Trust 2006-8 = $1,418,910,068

Long Beach Mortgage Loan Trust 2006-9 = $1,563,345,085

Long Beach Mortgage Loan Trust 2006-10 = $1,033,338,946

Long Beach Mortgage Loan Trust 2006-11 = $1,532,272,816


Total unliquidated = $8,877,005,942

Liquidated amount = $70,185,164,496 - $8,877,005,942 = $61,308,158,554

Liquidated percentage = $61,308,158,554 / $70,185,164,496 = 87.35% liquidated

_____________________________________________

IMO...Conclusions:

If total MBS/ABS Trusts value under DB Trustee =$166 billion

If we assume 87.35% liquidated

Calculations:

$166 billion x 87.35% = $154 billion liquidated in cash

DB settlement funds will finally be distributed to investors of the MBS/ABS Trusts ..."not prior to January 2018"

IMO...all Tranches will be paid along with the Equity Tranches/Interests.

I cannot find exact documentation as to the retained Equity Tranches/Interests that need to be retained by WMI subsidiaries...but whatever that amount, IMO, the rightful beneficial owner is the parent WMI (Escrow Marker Holders)
___________________________________________________

IMO.... My current conclusions:

1) As of the seizure (September 25, 2008), WMI had a total of $35,774,139,000 by virtue of total assets from MBS Trusts Assets (which only include assets from tranches senior to "Residual" tranches)

WMB = $18,896,245,000

WMB FSB = $16,877,894,000

Total = $35,774,139,000

2) https://bpinvestigativeagency.com/why-jpmorgan-chase-did-not-purchase-ownership-of-615b-worth-of-wamu-loans-in-three-simple-steps/

Pg. 116 –

From 2000 to 2007, Washington Mutual and Long Beach securitized at least $77 billion in subprime and home equity loans. WaMu also sold or securitized at least $115 billion in Option ARM loans. Between 2000 and 2008, Washington Mutual sold over $500 billion in loans to Fannie Mae and Freddie Mac, accounting for more than a quarter of every dollar in loans WaMu originated."


Total of $692 billion from all MBS Trusts created by WMI subsidiaries

Participation of WMI in MBS Trusts:

$35,774,139,000 / $692,000,000,000 = 0.0516 or 5.16%

3) Assume 3% compounded annually for nine years

$35,774,139,000 x 3% annually for nine years = $46,677,137,241.78

4) obviously these calculations were based on September 25, 2008, which means that none of the MBS Trusts did meet maturity/termination/liquidation, therefore "Residual" tranches are valued at zero. As of now (January 13, 2018), there are MBS Trusts that have reached maturity/termination/ liquidation. Thus we can finally add more value to recoveries for WMI/WMILT/Escrow Marker Holders.

Recoveries from MBS Trusts = $46,677,137,241.78 + unknown value of Residual Equity Tranches

5) WMi retained not only *Residual" Equity Tranches but they also retained tranches senior to them.


Therefore, WMI has more than a 5.16% participation in all of the MBS Trusts created by WMI subsidiaries.
I have taken the liberty of using some of the best due diligence period and consolidated two posts from Dmdmd2020, put them in order so one can follow close. This is the crux of what those who signed timely releases have been waiting for.