Mr Cooper Group Inc (COOP)

[hotmeat]

The only time cash changed hands was when investors purchased Participating Interests from the Trusts and the cash was then transferred back to WMB. The purpose of WMB "transferring" loans to it's SPE subs was to symbolically transfer ownership of the loans from WMB to the SPE. By doing this WMB reduced it's capital ratio requirements and also protected those assets from seizure (Safe Harbor). The transfer of assets from WMB to a qualified SPE was considered a "true sale", which was a major requirement for Safe Harbor protection back then.