Mr Cooper Group Inc (COOP)

[Nightdaytrader]

7. Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation
liabilities, the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses differ from those which are probable in that there
is a lesser likelihood of loss and payment from a receivership. As such, reasonably possible losses are not
accrued until the FDIC, through periodic review, determines that the likelihood of loss has become probable. A
receivership may be subject to significant losses from cases where uncertainties prevent a reasonable assessment
of the ultimate outcome and/or an estimate of the amount of loss which could result.

8. Estimated Interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to creditors holding proven claims against the receivership estate, including the claim(s) held by the FDIC in its Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims, under certain circumstances, after a receiver is appointed. Uncertainties exist as to the universe of creditors whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in full. Generally, the estimated liability for the total amount of post-insolvency interest payable respective to creditor claims is recognized in these financial statements when at least 95% of the principal of proven creditor claims has been paid.