Mr Cooper Group Inc (COOP)

[Dmdmd2020]

IMO...conclusions as of March 24, 2019:

IMO...The FDIC-Receivership or FDIC-Corporate have no jurisdiction over bankruptcy remote MBS Trusts created by WMI subsidiaries. So it was correctly stated technically by WMILT and FDIC, that they have no knowledge of recoveries by virtue of MBS Trusts.

The monthly payments to retained interests/beneficial interests (IMO...between 14.73% to 26.24% certificate participation in MBS Trusts) which are rightfully owned by WMI/WMI Escrow Marker Holders were frozen due to FDIC illegally seizing the non-banking assets (i.e. retained interests).

Per legislation detailed in my previous post:

https://www.boardpost.net/forum/index.php?topic=12150.msg245120#msg245120

“The transitional safe harbor applies to all securitizations issued before March 31, 2010, shielding the assets from seizure by the FDIC in instances where the insured depository institutions fail.”

So IMO...the question remains:

If the WMILT and FDIC claims there is no value to Equity Class 19 & 22, why did the Underwriters stipulate to decline a $24 million Class 18 creditor capped claim, and instead settled for a lower priority $72 million Class 19 equity uncapped claim. If all parties claim there is no money for Class 19 & 22, the WMILT should have just put the Underwriters’ claim into a Class 18 creditor position (at least the Underwriters would be assured a $24 million claim in a higher Class priority), or rather a Class 22 position.

My answer: remember...POR7 has a 75/25 split provision which gives 75% to Preferred Class 19 and 25% to Common Class 22 for all future recoveries. By virtue of the Underwriters’ actions, they probably believe there will be a recovery to Class 19 & Class 22.

So Class 19 gets a bigger cut of recoveries as compared to Class 22!

I can’t wait for the explanations by WMILT and the Underwriters!

Draw your own conclusions!