Mr Cooper Group Inc (COOP)

[wwhatthe]

CAL622003

You asked a good question.

I'm only an investor but, for Sits and giggles...
I would like to try to answer your question...

How on earth would anyone ever be paid?

All IMHO...

But first, Keep in mind,
The company’s liquidating trust pays off the creditors and distributes the new company shares.

The WMI liquidating trust had 200,000,000 new shares to distribute...
And only $7.3 Billion Dollars in cash...

This is because the FDIC seized $307 Billion in assets.

When the WMI liquidating trust closed... this indicated that all the creditors were paid,
and all the new company shares were distributed.

To illustrate my point...
This is a statement from judge MARY F. WALRATH
before the UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE,

It's after the bankruptcy,
She says…
Quote,
In excess of $7 billion was distributed to
creditors and shareholders. Virtually all creditors received
100% of their claims with post-petition interest and shareholders
received stock and warrants in a subsidiary that was capitalized
with $150 million in new money… End Quote

This excerpt shows us the creditors received about $7 billion Dollars and shareholders received new company stock.

The quote says,
“was distributed to creditors and shareholders”

But we're interested in,
How or in which way was that distributed?

So,
Let's start here,
This is from pdf page# 355/755 of the,
DISCLOSURE STATEMENT
It is about our tracking markers or contra-CUSIP positions.
It’s also about our escrow positions and the Depository Trust Company... (DTC)

Quote…
…The Trustees may conclusively rely upon the distribution instructions received from the debtors or their agents with respect to contra-CUSIP positions and escrow positions set up by the Debtors or their agents with the Depository Trust Company, and the Trustees shall close and terminate the original CUSIPS after making initial distributions of Creditor Cash and shall have no further distribution obligations thereafter…
End quote

Here where it says,
“may conclusively rely upon the Distribution instructions received from the debtors or their agents with respect to contra-CUSIP positions and escrow positions set up by the Debtors or their agents with the Depository Trust Company”

They are talking about our escrow position which according to the above excerpt, was set up by the Debtor (the company).

Every class has an escrow position... Every class has a Trustee.

The company had your information on record,
and because of the bankruptcy... it was used to set up your escrow position with the Depository Trust Company.

If you own your shares by street name... which means your shares are registered in your brokers name on the company's books... Which most do.
So, if you purchased your shares through a brokerage firm, they have your W9 tax information and would know how many shares you had.

Or,
If your shares are registered in your name on the company's books.
They know how many shares you had, but you may have had to provide a W9 tax form.

Either way, the company and TDC would have your name and information... including the use of your W9 tax information from your broker.

Our escrow positions... is because...

When you purchased shares in WMI, you created an equity position in WMI (the company).
When WMI filed for bankruptcy your equity position... also became an escrow position.

It's,
The Debtors (the company) or their agents who set up our escrow positions with the Depository Trust Company.

IMO... Not if, but when,
Anything comes back the Depository Trust Company has all the information they would need to make a distribution.
It would be the same as when it was done for the creditor’s cash, and our new company shares.

The contra-CUSIP number is assigned by DTC for use in reorganization activities, such as distributing company shares or cash.

For example, from the plan,
Some elected to receive shares...

So, some common and preferred shareholders received new company shares and were owed shares from the Disputed Equity Escrow Account.

So,
The Depository Trust Company knows if you are allowed to have shares or not...
That's because of the distribution instructions it received from the debtors (the company).

A contra-CUSIP number was used to distribute the 200,000,000 new shares.

Likewise,
The creditors were owed $7.3 Billion Dollars in cash.
A contra-CUSIP number was used to distribute the cash.

All from the Depository Trust Company with instructions from the debtors (The company).

The contra-CUSIP position is temporary... once the shares and the cash are distributed the numbers are no longer needed and they are removed.

Again,
The company’s liquidating trust pays off the creditors and distributes the new company shares.

There were 200,000,000 shares...
And only $7.3 Billion Dollars in cash...

When the WMI liquidating trust closed... this indicated that all the creditors were paid,
and all the new company shares were distributed.

Now,
Our focus should be on the FDIC’s $307 Billion in assets...
Because if the creditors are paid, then everything the FDIC has is equity and it belongs to the shareholders.

To illustrate this point.
This is from one of the SETTLEMENT AND RELEASE AGREEMENT’s

keep in mind,
WaMu is the Bank... and the Bank is owned by the WMI shareholders.

Quote,
FDIC-R succeeded to all rights, titles, powers and privileges of WaMu, including those with respect to its assets. Among the assets to which FDIC-R succeeded were all of WaMu's claims, demands and causes of action against mortgage brokers that originated mortgage loans for WaMu.
End quote.

The FDIC is a Conservatorship and Receivership...
As Conservatorship the FDIC protects the individuals and their estate.
As Receivership the FDIC preserves the value of the property.

The Estate and property are owned by the WMI shareholders.

One more about the FDIC...
This is from one of the court documents...

Quote,
“In its role as receiver for a failed depository institution, the [FDIC-R] has a statutory obligation generally to maximize the return on the sale or disposition of the receivership estate’s assets. The receiver distributes any funds realized from its liquidation efforts to the failed institution’s creditors and shareholders in accordance with the FDIC’s priority scheme.”
end quote.

So, the FDIC-R, sells the WMB’s assets and distributes the funds in accordance with the FDIC’s priority scheme…
Which is also, the distribution procedure and priority in the Plan on page 141 of the D/S…
And would also use the Depository Trust Company.

Keep in mind the creditors have already been paid by the WMI liquidating trust.

Also,
The FDIC is not a for-profit organization It's independent.
Their primary mission is to maintain stability and public confidence in the banking system,
The FDIC doesn't have shareholders or owners who receive profits... So, they do not generate profits. The FDIC is funded by premiums paid by insured banks, not by selling goods or services.

I know this post is getting long...

But,
Let's add this statement from JPMorgan Chase.

Because they purchased these assets from the FDIC-R...

Here in a statement Dated, Jan 13, 2010
JPMorgan Chase, Testimony before the Financial Crisis Inquiry Commission.

JPMC states…
With the acquisition, we purchased approximately $240 billion of mortgage and mortgage related assets… with $160 billion in deposits…. and $38 billion in equity… We immediately wrote down most of the bad or impaired assets (approximately $31 billion) …. and established proper reserves for the remaining assets, ….as well as for severance and close-down costs.

So,
To answer your question...

How on earth would anyone ever be paid?

Our escrow positions were set up by the Debtors or their agents with the Depository Trust Company,
The Depository Trust Company received Distribution instructions from the company... including your W9 tax information it had from your broker... we don't have to do anything but stay updated with our brokerage firm.

And,
We don't get paid for our escrow shares/markers...
We get paid for our Escrow position.

Sorry for the long post...

All IMHO...
Good luck to you.

You may also be interested in my post #720961
"We don't get paid for our escrow shares/markers... We get paid for our Escrow position"

Thank you for reading my post.
Stay safe… Stay healthy

And of course,
Just my opinion, research, and curiosity…

Wwhatthe