Mr Cooper Group Inc (COOP)

[Dmdmd2020]

Valuation Research Corporation has always been paid by WMILT in the past.

Per the filing regarding amounts paid by WMILT as of September 30, 2018:

http://www.kccllc.net/wamu/document/0812229181008000000000001

Valuation Research Corporation was paid $17,500 for work rendered between January 01, 2018 to March 31, 2018.

In the past quarterly filings regarding Valuation Research Corporation, they’ve been paid $20,000 to $40,000 per quarter.

IMO...I think Valuation Research Corporation’s (VRC) work is completed.

My questions:

1) what was VRC’s work with regards to WMILT?

My answer: VRC was evaluating more than just tax issues, but I contend they were evaluating future assets that might be coming back to WMILT (i.e. assets due to beneficial interests in certificate participation in MBS Trusts created by WMI subsidiaries)

2) why was VRC not retained past March 31, 2018?

My answer: It can’t be due to the Merger with NSM, because this is concerning WMILT only not WMIH. I think VRC completed their work once the Globic/DB litigation was closed and consummated on December 31, 2017.


Take a look at VRC website:

https://www.valuationresearch.com/services/alternative-asset-valuations/

Read their whole website, but focus on “Alternative Asset Valuations”


Subsection “Complex Securities”

And

Subsection “Portfolio Valuations”

https://www.valuationresearch.com/services/alternative-asset-valuations/portfolio-valuations/

Excerpt:

“As the universe of illiquid assets grows so grows the need for VRC’s Portfolio Valuation Group. Portfolios themselves have grown more complex, incorporating alternative asset investments among the traditional stocks, bonds and cash equivalents.

Due to increased investor, audit and regulatory scrutiny around fair value reporting for illiquid, non-public investments, private equity funds, private debt funds, hedge funds, financial institutions and investors rely on VRC for independent third-party valuation services.

When an investment portfolio includes illiquid, non-public assets, a specialist is often needed to analyze and report the valuation of these investments for financial, investor or lender reporting.

Engaging a third party to perform portfolio level valuations, the valuation process bolsters documentation, increases independence and transparency and materially reduces measurement and reporting risks.

Not only does this provide VRC the experience and ability to execute accurately, but we also have a large database of propriety market data, which we use to enhance our precision.

Our practice provides valuations for:

Credit Investments
Floating and fixed rate 1st lien, 2nd lien and unitranche loans
Secured or unsecured mezzanine debt and convertible bonds
Equity Investments
Convertible preferred, straight preferred, simple and complex equity structures
Derivatives
Options
Warrants
Credit default swaps (CDS)
Structured Products
Collateralized loan obligations (CLO)
Collateralized debt obligations (CDO)
Bespoke portfolios
Our clients include:

Private equity funds
Private debt funds
Business development companies (BDC)
Hedge funds
Venture capital funds
Mutual funds
U.S. and international pension funds
Endowments
Insurance companies
Banks and other financial institutions

We provide fund managers and clients extensive experience across a myriad of industries. As a third party assessor, we are able to add an independent viewpoint as well as an extra layer of support and transparency with more robust valuation policies that conform to best practices. We deliver well-supported conclusions and reports that comply with the relevant reporting standards and substantiation to withstand possible scrutiny.“