So WMI owns the Beneficial Interest, of WMB loans I suppose. So questions:
Again, Loans owned by WMB were sold to JPM in 2008, those ""sold"" (true sale) to SPE's and then placed into Trusts as MBS's are the loans WMI could have Beneficial Interests in.
Does it cease to collect interest in 2008 or 2012 or until the loan is paid off?
In most cases the Trust Assets continue to perform as per normal even through bankruptcy until all loans are repaid or the Trustee decides to close the Trust. DB was different since there were repurchase obligations for non-performing loans. These loans could not be replaced once the bankruptcy was filed in 2008 or compensated for until the FDIC settled with DB in 2017.
you said that this interest money is not in the trust possession yet and so is it held by JPM now? Does JPM has to pay or everything will have to come from the 40B assets that FDIC has retained?
If there is cash from BI's they will be held in court sanctioned accounts, possibly with JPM or another bank. JPM does not own or control these funds. The $40B possibly retained by the FDIC has nothing to do with JPM. WAMU had $299B in assets, JPM received $258B so the FDIC may have kept $40B for their own use. Unless JPM chooses to purchase these assets, they owe the FDIC nothing.
As mortgages are paid off, do you think that the longer the trust hang onto those beneficial interest or DST or whatever you call, they will decrease in value? If so then why didn't the trust sells it sooner?
This was addressed yesterday. As payments are made to BI holders the total they are owed will obviously decrease, that cannot be helped. What affects the value of an asset is it's current worth and market conditions ie 2008 compared to 2018. If at the start the BI's were worth $2B Total, to be paid over 5 years, after 2 years of receiving payments it would not still be worth $2B since $800M would have been already paid to the holder. If the holder then decides to sell the remaining 3 yrs of interests now worth "$4.2B", they may have to sell it for $4B or less since the new investor needs to generate a profit. Selling it sooner could actually result in the original holder sacrificing profits since the asset would be discounted in order to cash in earlier.
These are all my opinions based on my interpretation of the facts I've read.
The Socratic Method...is the best method!
