Today's 10-Q: 10. What interesting is the mention of OFF- balance sheet SPE/VIE mortgage backed collatoral assets, that COOP believes should be 'now consolidated in the future....blended and folded. This is a big statement to make!
COOP is acknowledging on and off balance (legacy WMI interests?) SPE transactions that will be consolidated now. COOP could now be taking ownership of the legacy collatoral mortgage assets. This would mean the Delaware trusts then reconciling with legacy who released. imo
"10. Securitizations and Financings
Variable Interest Entities
A summary of the assets and liabilities of the Company’s transactions with VIEs included in the Company’s condensed consolidated balance sheets is presented below:
In the normal course of business, the Company enters into various types of on- and off-balance sheet transactions with special purpose entities (“SPEs”) determined to be VIEs, which primarily consist of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which the Company transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those
The Company has determined that the SPEs created in connection with certain advance facilities trusts should be consolidated as the Company is the primary beneficiary of each of these entities. Also, the Company consolidated certain reverse mortgage SPEs as it is the primary beneficiary of each of these entities.
Yes, Coop is the primary beneficiary of the off balance and legacy trusts backing assets, as they would be in receipt and control of these assets for collatoral purposes.
Keep in mind COOPS 10Q is only quoting up till 3/31/21 and only reporting ON- balance sheet numbers. Off balance sheet (legacy) is off balance sheet. Magic
