Mr Cooper Group Inc (COOP)

[ReikoBlack]

JPMorgan found a $30 billion 'unexpected bonus' in the remains of Washington Mutual
Jul. 1, 2015, 1:47 AM
https://www.businessinsider.com/r-jpmorgan-builds-up-apartment-loan-leader-from-wamu-rubble-2015-7

"In September 2008, JPMorgan Chase & Co executives sifted through the rubble of Washington Mutual, the failed home-loan bank that they had just won in a US government auction.

They found something unexpectedly good: about $30 billion of mortgages on apartment buildings, which earned strong returns whether the economy was performing well or not.

"It was an unexpected bonus," JPMorgan chief executive Jamie Dimon told Reuters in an interview, adding that the apartment-lending business is the single most valuable asset that JPMorgan acquired in the auction.

Washington Mutual's apartment-lending business was the biggest of its kind in the US and Dimon has made it even bigger. JPMorgan now holds some 20% of the US bank loans on apartment buildings.

Before the crisis, the bank ranked closer to 20th. JPMorgan now has $52 billion of these loans outstanding, giving it a stronghold in a market that is increasingly important in the US after the housing crisis brought down the homeownership rate.
Within JPMorgan, apartment lending is a relatively small business, accounting for less than 2% of its $2.6 trillion of assets. But the unit is seen as a model for how JPMorgan wants to run its lending business overall: Make smart lending decisions in good times, like now, so that it can be strong enough to buy distressed assets on the cheap during bad times.

That's how JPMorgan's apartment-lending business grew so much during the crisis: The bank bought assets from Washington Mutual and Citigroup Inc at low prices, which are generating solid income now. The bank is plowing income from crisis assets back into its business to make it more efficient and better prepare it for the next downturn."

JPM knows it and prepared for it back in 2015, waiting for WMILT to close the two cases. JPMorgan found an unexpected $30 billion