it is possible that the WMI Trust holds PLM (Private Label Mortgages), and that is the reason that WMI needed to have a Trust in the first place.... why?...banks and other agencies that bundle up Mortgage backed securities usually sell them to GSE (Government Sponsored agencies) because they carry a lower risk of default, because Fannie Mae, Ginnee May Freddie Mac require higher levels of requirements when the loans are made to applicants.... WAMU was probably engaged in lower qualifications to create mortgages, and therefore,placing them in Trust was another level of safety for those that bought them....they were probably Pass Through mortgages, which meant WMI collected the principal and interest and passed these payments on to the buyers of the MBS, and WMI would funnel off a certain percentage for servicing fees and insurance fees in case of defaults....why is this important?...the 299 billion dollars that has been floated around for years is not actual money that the Trust holds in cash,or equivalents... it represents the value of the MBS that are held in Trust....now, why does not WMIH show these funds on their balance sheet via the 10-K we are all waiting for?....simply because these assets belong to the investors who bought those MBS which WMIH is servicing....I am certain that WMIH has a large amount of fees that gathered all of the years they were servicing them, but no where near the billions as some suggest on the board... if they did have billions, in Trust of their own funds, there would have been no need to enlist KKR to help fund the Nationstar merger.... another thing why WMIH cannot show trust assets on coops books is that under the terms of the Trust, there are precluded from entering capital producing business ventures because the Trust is exempt from paying taxes on what the Trust is producing, as long as they remain a Trust, and not a business.... AIMO only Lodas
