Mr Cooper Group Inc (COOP)

[Dmdmd2020]

dmceng,

The individual trustees have been remitting monthly payments to investors/certificate holders of the individual MBS Trusts, except for the WMI Escrow Marker Holders. Per the testimony of David Beck (head of WMI’s capital markets division, which was in charge of securizations):

“Washington Mutual Inc. generally retained the right to service the loans. WaMu or Long Beach might also retain a senior, subordinated, residual, or other interest in the loan pool.”

IMO...WMI Escrow Marker Holders are owners of beneficial interests (in senior tranches, subordinated, and residual/equity tranches) in $692 billion to $1.616 trillion WMI securitizations.

IMO, I believe the individual trustees are holding those monthly cash payments in segregated custodial accounts (collecting interest) ready to be distributed to the WMI Escrow Marker Holders when the FDIC and BK court finally resolves all issues.

There seems to be a legal mechanism that prevents disbursement. Remember, WMB bondholders’ claims are still outstanding, then comes Equity claims against the FDIC, and of course the ex-Wamu employees (but those claims already have a reserve set aside).