Replies to post #487637 on Mr Cooper Group Inc (COOP)

[CBA09]

Ref: under what circumstances would JPM be able to legally liquidate these loans and retain the proceeds?

Comments:

Banks, on and on going basis, manage / monitor asset to liability exposure. Portfolio Loans, ( retained "ON balance sheet ) that generally fall to the following categories:

1) Loans in default,

2) Collateral of Loans not of high quality - properyy market value deteriorating.

3) Loan to value exceeds Banks benchmark of acceptance.

Above exposure will generally trigger a bank to liquidate / sell loans. As to leave such loans on the books will required increased loan loss reserve and higher capital requirements.

The 60 to 100 billion seems like a lot but paramount to a bank is liquidity / credit risk management.