Mr Cooper Group Inc (COOP)

[Split T]

The following is from a good friend and the most important 2 pieces of info that should be read to figure out how the GSA solved disputes over WMI's assets which been resided in the loans portfolio of $241.5b (239.6b +1.87b loans held for sale) showing on the balance sheet of the following report page 2

WAMU Q3/2008
https://www.sec.gov/Archives/edgar/data/933136/000104746908009146/a2187197z10-q.htm

MOR after reorganization on 03/2012
www.kccllc.net/wamu/document/0812229120330000000000007

All the numbers presented actually relied on numbers shown on page 2 (balance sheet) of the first report above and on numbers taken from the MOR dated 03/2012

We all know by now that WMI's assets were tied in loans and have to be freed before any distribution could happen to the holding company assets
Also we all know by now that both WAMU and WMI share the ownership of these assets at that portfolio

In my opinion to know how the GSA calculated the amount of WMI's assets is an easy task by looking into the loan losses ratio between the holding company and the bank and apply it to each one to figure out how much of these assets actually belong to WMI

Please be aware that total loans recorded on WAMU books in 2008 = 617b (this number we will not find it in the report but it was mentioned in congress when discussed WAMU) or 585b as it is recognized by JPM and reported on it's reports in 2008

At page 2 of the report showing the total loss allowance =8.456b
to figure out the loss ratio to all assets owned by WAMU we divide 8.456b/241.5b = 3.5%
We can figure out WMI's assets which the GSA gave WMI as follow
In 2012 WMI had 6b NOL calculated at 3.5% loss ratio so WMI owns total of 6b x 100/3.5% =171.4b (including 6b loss)
net assets after deduction of the NOL =171.4 - 6b =165.4 (WMI's total assets at the loans portfolio )
we can figure out the former share holders assets ratio by dividing 241.5b /617b total assets =39.14% (this percentage should be 41% because JPM recognized total assets of 585b only but I will use the lowest)
Former shareholders assets at 39.14%(the lowest rate)=165.4b x39.14% =64.73b (remote assets)
Add 64.73 remote assets to the recognized equity in 2012 of 20.5b (second link above page 7 and 9) =85.23b

Lately COOP announced additional 300m NOL that is will make it =6.3b which will add 8.57b to our total assets (if we use same equation 300m x100/3.5% = 8.57b)

Bottom line.. in 2012 we had 20.5b equity and 65b remote assets =85.5b total assets before the final audit and accumulated interest.