Mr Cooper Group Inc fka COOP

[LuckyPanda]

Here's a good article on bankruptcy remote assets (our loan portfolio in safe harbor).

https://www.lendinglawreport.com/2015/02/articles/bankruptcy/the-not-so-remote-possibility-of-the-bankruptcy-of-a-bankruptcy-remote-entity/

The creditors of our loan portfolio (i.e. Wamu deposit base and class 17 WMB bondholders) would have demanded the loans be placed in an bankruptcy remote SPV entity to separate the risk of the operating bank from the performance of the loans.

Now if you believe Wamu corporate attorneys were not idiots, they would have also securitized and placed the WMI beneficiary interest (2.9% profit margin on the loans) in the same bankruptcy remote entity. If you believe otherwise, then you should forget escrow and go live your life because there will be nothing left for escrow.

However, if you believe WMI beneficiary interests (2.9% profit margin on $300B loans) were also placed in the same bankruptcy remote SPV entities then keep reading the linked article above.

Notice towards the end of the article it says...

Once the assets of a bankruptcy remote entity are within the jurisdiction of the bankruptcy court, the bankruptcy court can authorize the sale of the lender’s collateral under section 363 of the Bankruptcy Code, free and clear of the lender’s liens.


Basically, Rosen can legally deny all he wants of safe harbored assets because they are bankruptcy remote in SPV entities....until the assets falls within the jurisdiction of the bankruptcy court. When does that happen? I'm assuming when all the creditors of WMI has been paid off. So according to this article, we should be able to ask Rosen about our bankruptcy remote (safe harbored) assets once PIERS is paid off. I dont think he can legally deny the assets then.