Mr Cooper Group Inc (COOP)

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Professional Liability Annual Report for 2023
https://www.fdic.gov/resources/resolutions/professional-liability/annual-reports/pl-2023-annual-report.pdf
Authorized and Pending Lawsuits
During 2023, the FDIC Board of Directors approved one, and delegated authority
approved four, MMF cases, all of which authorized the FDIC to sue mortgage brokers for
indemnification. The largest of the five approved cases is against CTX Mortgage Company,
LLC (CTX), and Pulte Mortgage, LLC (Pulte Mortgage) as successor to CTX, for loans that CTX
brokered to Washington Mutual Bank (WaMu), Henderson, Nevada, and that WaMu in turn
sold to RMBS trusts. The FDIC settled claims related to defective loans that WaMu sold to
RMBS trusts for a $3 billion receivership certificate. Because CTX contractually agreed to
indemnify WaMu for losses resulting from defective loans it brokered to WaMu, the FDIC seeks
to recover the portion of its settlement with the RMBS trustee attributable to losses on the
CTX loans. On August 28, the FDIC filed the approved lawsuit against CTX and Pulte Mortgage
in federal court in the Central District of California seeking contractual indemnification plus
attorney’s fees and pre-judgment interest. In total, the FDIC filed 11 MMF lawsuits during the
year. WaMu failed on September 25, 2008, with $307 billion in assets.