Mr Cooper Group Inc (COOP)

[Civil War General]

You are confusing WMB (the bank) with WMI (the holding company)

Yes, you are correct that WMB sold the loans to investors through an off balance sheet trust created by a WMI subsidiary. Since WMB no longer owned these loans, JPMC could not have bought them from the FDIC.

Now, WMI, as a holding company that also owned the securitization company as a direct subsidiary, was on the hook for bad loans according to the details of the trusts and had to own a percentage of each of the trusts in order to comply with this requirement.
WMI’s off balance percentage of a stand alone SPE Delaware Trust could NEVER become the property of JPMC through the FDIC seizing WMB, nor could it be part of the bankruptcy until and if it received payment from the trusts prior to or during the bankruptcy. There are trigger clauses that protect the corpus and the potential disbursements of the trust in the presumed unlikely event of a bankruptcy.
So, those are the facts.