Replies to post #413012 on Mr Cooper Group Inc (COOP)

[pm1012244448]

Has JPM admitted they do not own these assets?

[bkshadow]

gold-nugget, I do understand quite well...

...the mortgage process for both portfolio loans retained, mortgage backed securities packaged and sold and serviced, mortgage backed securities packaged and sold and not serviced, retained interest, etc., as well as the SEC reporting requirements and GAAP. There is no such thing as a bank lending money (a note) secured by a mortgage (and perfected), well securitized or portfolio, and disappearing.

Comments or questions in blue.

gold-nugget Friday, 01/30/15 09:47:44 AM
Re: mypenneys post# 413011
Post # of 413017

People here don't understand about writing mortgages.

Agreed. See above.

Where did those assets go???

On the books of WMB (or originating subsidiary or acquired lenders purchased, such as Long Beach), consolidated up to WMB, and consolidate up to WMI. A bank lender does not pay a seller of a home $500,000 at a closing and not record the corresponding note and mortgage loan as an asset on their book "simultaneously." It simply cannot happen as each transaction requires two sides to record, technically, a debit and a credit; otherwise there is an imbalance that must be reconciled. Unreconciled amounts of a material nature are report in monthly regulatory bank reports, and subject to annual audit.


They just don't go poof out of thin air.

Correct, see previous.

They are an asset.

Correct, see previous.

So where is that asset and who is servicing the income.

See above, every transaction records the mortgage asset and a reduction in cash to pay to the seller of the home at the closing.

As consumers are paying those mortgage loans and sending the payments to where? Who is collecting those payments. And where is that money going to.

Per above, on portfolio loans, the bank is paid by the borrowers. The payment is recorded as principal and interest collect and the balance is reduced by the principal and interest income is recorded. Re: loans serviced, same, except such are coded for the benefit of the MBS loan series and tranches for the owners of such in trusts; in such case, the bank records it "servicing fee income" and, usually monthly or quarterly, it assesses how much of its retained interest changed (did the over or under estimate the original value of the pool of mortgages securitized).

This was never brought up in court. why we have to ask. This imo is an hidden asset That was not sold to jpm. We know this to be true by the filings. So we have to ask. Where are those assets at and who has them. Who is the rightful owner of these assets. U have to understand accounting and business law to answer these questions.

Simple, not brought up in court because there is NOTHING to support any assertion that $100 billion of mortgages are off the books. It is therefore not a hidden asset as all assets (essentially, all loans and MBS loan servicing arrangements) were sold to JPM and JPM has recorded them at amounts almost in tandem with the FDIC-R inception reporting. So they are not missing and they do not need to look for them. The rightful owners own them. Yes, you do need to understand accounting and business, especially bank and bank holding company industry, with SEC reporting.

[David West]

The Mortgage Pools.

Also known as “Trusts” as that term relates to Residential Mortgage Backed Securities (RMBS).

Although WMI may have had some “off-the-books” or “hidden in plain sight assets” (none have shown up yet), the bulk of the mortgages belonged to WMB. Before seizure, WMB assigned the mortgages to various Mortgage Pools, selling Mortgage Backed Securities to investors. In accordance with the Purchase and Assumption Agreement, paragraph 2.1, Liabilities Assumed by Assuming Bank, JPM specifically assumes all mortgage servicing rights and obligations of the Failed Bank. In paragraph 3.1, Assets Purchased by Assuming Bank, JPM further purchases all mortgage servicing rights and obligations of the Failed Bank. This may mean WMB was servicing their own loans and loans for other parties.

What happened to the mortgages?

At the beginning of the receivership they still existed, but were not a part of the bankruptcy because they belonged to WMB. The mortgages are now victim to the various ongoing actions by FDIC-R and JPM to identify who owns what and who is going to recover what part of their investment.

The link below is to the Amended Complaint of the Deutsche Bank National Trust Company. It describes in detail how the Mortgage Pools and RMBS processes worked for WMB. It is lengthy, but is well worth the read.

https://www.fdic.gov/bank/individual/failed/wamu_amended_complaint.pdf

As I have posted before:

My opinion on the outcome of the Beneficial Interests (escrow markers):

Historically, the Beneficial Interests are worthless to equity. However, hope is eternal. Sometime between now and the moment they are deleted from our trading accounts we will know.

It is clear the true value of the mortgages owned by WMB is much less than reported, due to the actions required by the WMB repurchase agreement; the FDIC-R is now sorting through this maze of confusion. Because so many investors, like Deutsche Bank National Trust Company, are going to get a piece of the repurchase action, I have called them “hollow mortgages”. Assuming there is anything left after claims against WMB are resolved, the FDIC-R should return it to the WMI Liquidating Trust (because WMI owned 100% of the bank), where it will enter the waterfall. Only time will reveal the outcome. I think there will be value returned; speculation on the value is futile. Currently, the only value that will hit the waterfall will come from those sources clearly owned by WMI, excluding anything from the WMB receivership. Any value that anyone anticipates will come from the reconciliation of the receivership of WMB is purely speculation based on unclear evidence and guesses. However, with 500,000 Beneficial Interest markers in my TD Ameritrade trading account, I sincerely hope I am wrong.

My immediate concern is will the BOD up-list WMIH to a major exchange. Don (Bluefoxx) says the agreement with KKR requires WMIH be up-listed within 180 days. If the up-listing occurs, I expect the share price to reach my exit price of $10 by year end.

Mostly fact.