Mr Cooper Group Inc (COOP): One simply has to look at WAMU's las...

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hotmeat

Re: BBANBOB post# 543338

Sunday, 10/21/2018 3:19:56 PM

Sunday, October 21, 2018 3:19:56 PM

One simply has to look at WAMU's last Form 10Q for the period ending June 30, 2008. Securitizations are off balance but retained interests must be reported as assets as per SEC rules. From the 10Q we saw that WAMU held anywhere from ~$26B-$30B in proven investments. If more exists it simply is not substantiated based on the reporting requirements of retained interests.

NOTE: The reason for the need to report retained interests on the books is that it can severely impact a bank's solvency (asset default) and thus affect it's Capital Requirement needs.

Retained Interests In Securitizations And Implications For Bank Solvency

25.2 Cancellation of Common Equity Interests:.., on the Effective Date, ALL Common Equity Interests shall be deemed extinguished and the certificates and ALL other documents shall be deemed cancelled.