Mr Cooper Group Inc fka COOP

[Donotunderstand]

Bull

I assume u know but the DOJ is saying

If you have toxic or ccc bonds - go ahead and market - that is cool

If you have great bonds or AA bonds - go ahead and market - that is cool

What is not cool - what is viewed by the DOJ as illegal

Knowing that your bonds are ccc or lower and marketing them as AA

So - as said by the DOJ - the ccc value or level of quality is not the issue - the issue - the criminality - is selling them as much higher grade bonds - (and then arguing that the buyer can know - which has been shown to be bullsheet)*

In the Weeds for those who follow bonds

It is now accepted that the seller of MBS paper always has an advantage over the buyer - even if the buyer sets terms like the first 10% loss is called Tranch 1 and Tranch 1 is absorbed by the seller

The seller can still package (e.g. dump 50% crap in a few) in such a way as to not incur many Tranc 1 costs and when they do absorb 10% then kill the buyer with a 40% loss