Mr Cooper Group Inc (COOP)

[Dmdmd2020]

Mordicai,

From your previous post:

So, if the escrows have no value, what would be the point of the underwriters to continue fighting for the escrows on appeal?

IMO...my conclusions as of April 30, 2019:

1) I believe the Underwriters are fighting hard to keep Class 19 uncapped Equity Claims because they know the big recoveries via bankruptcy remote Retained Interests in MBS Trusts that WMI subsidiaries created .

2) Per my IHub post#565086, in every quarterly and annual report it states that WMI (WMI Non-banking subsidiaries such as SPEs) retained interests in senior, subordinate, and residual tranches of every MBS Trust that WMI subsidiaries created:

“WMI 2002 10-K filed as of 3-17-2003:

https://www.otcmarkets.com/filing/html?id=2206372&guid=wS_3UWGktwOhf3h

PDF page 44 of 336:

“Asset Securitization
We transform loans into securities, which are sold to investors – a process known as securitization. Securitization involves the sale of loans to a qualifying special-purpose entity ("QSPE"), typically a trust. Generally, in a securitization, we transfer financial assets to QSPEs, which are legally isolated from the Company. The QSPEs, in turn, issue interest-bearing securities, commonly called asset-backed securities, that are secured by future collections on the sold loans. The QSPE sells securities to investors, which entitle them to receive specified cash flows during the term of the security. The QSPE uses proceeds from the sale of these securities to pay the purchase price for the sold loans. The proceeds from the issuance of the securities are then distributed to the Company as consideration for the loans transferred. The Company has not used unconsolidated special-purpose entities as a mechanism to remove nonaccrual loans and foreclosed assets from the balance sheet.
Securitization is used to provide a source of liquidity and less expensive funding and also reduces our credit exposure to borrowers. As part of non-agency securitizations, we use QSPEs to facilitate the transfer of mortgage loans into the secondary market. These entities are not consolidated within our financial statements since they satisfy the criteria established by Statement No. 140 , Accounting for the Transfers and Servicing of Financial Assets and Extinguishments of Liabilities . In general, these criteria require the QSPE to be demonstrably distinct from the transferor (the Company), be limited to permitted activities, and have defined limits on the assets it can hold and the permitted sales, exchanges or distributions of its assets.
We routinely securitize home, specialty home loans and commercial real estate loans into the secondary market. The allocated carrying value of loans securitized and sold during the year ended December 31, 2002 was $163.60 billion compared with $102.05 billion in 2001. Investors and securitization trusts do not have any recourse to the Company for loans securitized and sold during the years ended December 31, 2002 and 2001. When we sell or securitize loans, we generally retain the right to service the loans and may retain senior, subordinated, residual, and other interests, all of which are considered retained interests in the securitized assets. Retained interests may provide credit enhancement to the investors and represent the Company's maximum risk exposure associated with these transactions. Investors in the securities issued by the QSPEs have no further recourse against the Company if cash flows generated by the securitized assets are inadequate to service the obligations of the QSPEs. ”

...

“Retained interests are recorded on the balance sheet and represent mortgage-backed securities and MSR. Retained interests in mortgage-backed securities in which the securitization has been accounted for as a sale, were $10.78 billion at December 31, 2002. Retained interests in MSR were $5.34 billion at December 31, 2002.”

3) The rightful owners to the Retained Interests in MBS Trusts are the legacy WMI Escrow Marker Holders, and the reasoning is detailed below.
____________________
Per my boardpost.net post as of November 01, 2018:

https://www.boardpost.net/forum/index.php?topic=13207.msg233562#msg233562

“Per the SEC press release :

https://www.sec.gov/Archives/edgar/data/19617/000119312508201636/dfwp.htm

Excerpt starting on the bottom of page 1-2;

“New York, Sept. 25, 2008 – JPMorgan Chase & Co. (NYSE: JPM) tonight announced it has acquired all deposits, assets and certain liabilities of Washington Mutual’s banking operations from the Federal Deposit Insurance Corporation (FDIC), effective immediately. Excluded from the transaction are the senior unsecured debt, subordinated debt, and preferred stock of Washington Mutual’s banks. JPMorgan Chase will not be acquiring any assets or liabilities of the banks’ parent holding company (WM) or the holding company’s non-bank subsidiaries. As part of this transaction, JPMorgan Chase will make a payment of approximately $1.9 billion to the FDIC.“

___________________________

Per the quote above:

“JPMorgan Chase will not be acquiring any assets or liabilities of the banks’ parent holding company (WM) or the holding company’s non-bank subsidiaries”

IMO...my conclusions as of November 01, 2018:

1) FDIC seized WMI’s assets such as non-banking subsidiaries (i.e. real estate, mineral rights, SPEs with beneficial interests in certificate participation in MBS Trusts created by WMI subsidiaries, etc.)

2) JPMC did not buy any of the assets that rightfully belonged to WMI and WMI non-banking subsidiaries.

3) FDIC will return those frozen assets (WMI non-banking subsidiaries) when the BK cases close and the FDIC receivership is resolved.

4) When exactly?

My answer: I don’t know but we’ll be one step closer once the BK cases are closed.”

____________________

Per my IHub post#572918:

“IMO... my conclusions as of April 29, 2019:

1) “As of March 31, 2016, there were seven whole loan securitizations and five SSGNs with a total collateral value of $3.2 billion. ”

2) Per Duff & Phelps as of March 31, 2017:

https://www.globic.com/wamurmbssettlement/pdfs/2.%202017%2004%2026%20FILED%20WAMU%20TIP%2002-Amended%20Declaration%20iSo%20David%20L.%20Zifkin%20Submitting%20Further%20Evidence%20in%20Support%20of%20Petition.pdf

Pages 102-104 of 108:

If you added up all the MBS Trusts under column “Current Group Collateral Balance”

The total is $13,034,873,722.00


3) Therefore all the FDIC Receiverships as of March 31, 2016 was $3.2 billion.
While just under trustee DB (one of many trustees that have MBS Trusts created by WMI subsidiaries) there was a total of $13.034 billion

4) IMO...this proves that the FDIC were not in possession of MBS Trusts created by WMI subsidiaries after WMB was seized in September 25, 2008, because as of March 31, 2016 the FDIC were in possession of only a total of $3.2 billion in MBS Trusts from all FDIC Receiverships. While according to Duff & Phelps, DB had at least a remaining collateral of $13 billion in MBS Trusts created by WMI Subsidiaries as of March 31, 2017.

5) After the seizure of WMB on September 25, 2008, MBS Trusts created by WMI subsidiaries were left in all their respective trustees because they were and still are bankruptcy remote, and the FDIC did not legally transfer them to the FDIC Receivership.

6) The MBS Trusts have been performing since the seizure and are properly distributing to the respective investors in each respective MBS Trusts.

7) I still contend that WMI Escrow Marker Holders are the rightful owners to the retained interests in MBS Trusts that WMI subsidiaries created. And the recoveries from these interests will be distributed after the BK cases are closed and after the FDIC/JPMC settle with Class 17B. (Per AZCowboy (IHub Post#572651), his Class 17B shares have been designated new JPMC Cusips, therefore there’s a possibility that Class 17B will be paid off soon). “