Mr Cooper Group Inc (COOP)

[David West]

Don and Royal Dude,

Thanks for the information.

It is still unclear how the OTS could seize the WAMU subsidiaries of WAMU Asset Acceptance Corporation, WAMU Capital Corporation, WAMU Mortgage Securities Corporation, and Long Beach Securities Corporation and place them in receivership with FDIC-R. According to the subsidiary list, they were not federally chartered banks, were not banks at all, and were not subsidiaries of Washington Mutual Bank. They were subsidiaries of WAMU; their veil of incorporation should have protected them.

The fact remains the OTS (or someone in power) did seize them and sold them to JPM. This fiasco is the reason JPM is still servicing the loans, while the paper trail of (mortgage) ownership is faint.

The officers of WAMU apparently did nothing about the (wrongful?) seizure and sale, which is a strong implication they did not want their conduct brought into a criminal court. A study of the tangled web of how WAMU originated and managed the mortgages, before and after the bankruptcy, is an eye opener for anyone truly interested in what happened to Washington Mutual Bank, and WMI.

Legal or not, the most obvious reason the OTS seized the subsidiaries and placed them in receivership with FDIC-R is because the criminal conduct of all parties involved caused the mortgages to be at high risk. The apparent scapegoat was FNMA. That being the case, the taxpayer is fortunate things turned out the way they did (bailouts with repayment), and the common shareholder of WMIH is fortunate beyond belief.

Best regards,
David West