Mr Cooper Group Inc (COOP)

[redisnieurt]

I have no idea about any residual stake. I just dont know. I described mechanically how this could work, and most importantly that WaMu / WMI didn't "own" the trust.

As far a write downs, any bonds that WaMu may have retained from the securitizations would have been held on their balance sheet as a Held for Investment Security that would NOT be subject to "Mark to Market" valuation.

What I mean by that is if they had 1 share that cost $1,000 and paid 6% interest per year, that the value of that share in the open market might go up or down (generally based on the credit rating and interest rate) but it would not be recorded in their books each month. It would stay on the books as $1000 until such time it was sold, and the price that it was sold at would determine the gain or loss.

Remember, these were not LOANS that they owned directly.