What People are not Realizing is that this COVID-19 Pandemic has created an Enormous Financial Crisis, apart from the Biblical proportion Health Crisis. Though the 'Talking Heads' may talk loosely about a "V-Shaped Recovery", The Reality is Quite Stark...Especially When it comes to the Mortgage Servicers - Yes, COOP & Also, Our 'Majority Servicer" -JPMC - of all our 'Hidden Wamu MBS Assets' that were sold off to Investors..I am hearing this not only on CNBC but seeing it personally - I am rehabbing a property and my Lender partner is running scared because they are on hook 'as servicer' to pay their Investors/warehouse lenders for all loans they advanced to builders like me.
Coming to WaMu, that means, COOP and JPMC are 'on hook' to pay investors EVEN Though they may not own the underlying Assets. This is the same case with ALL Mortgage Servicers in the Country..And, that's why last week, the MBA and yes even J.Bray were pleading with steve Mnuchin that there needs to ba a 'Relief Package' for MBA/Mortgage Services and Treasury is looking to come up with a Package early next week precisely to address this issue. BUT then, Treasury Package" will expect that Relief is only a 'stop-gap' measure which means COOP/JPIG will NOW be FORCED to BUY UP those Underlying Assets they were Servicing (AKA "WAMU Hidden MBS Assets) from FDIC so that if there is a Future MEGA-Bazooka "MBS Bailout Package", they better show that they "Hold Title" for those Mortgages so that they can 'participate' in such a package... I think a Lot of Homeowners og WAMU Mortgages may Default, which would force JPIG, COOP to buy the Mtg Assets so that they can start 'cleaning up' those portfolios, to cut their losses... So, this very Unfortunate Crisis may Force FDIC's hand to finally Sell our Assets to JPIG...and That Means they PAY Us Finally!
