Short answer, Yes
Assets in safe harbor would be recorded as such on the books but would be protected from BK. The idea stated frequently that they exist and interest is accruing, payments collected etc. just doesn’t make any sense. Safe Harbor Assets are not exempted from IRS tax returns, and interest and principal flows to the asset owners of MBS who report the earnings on their books. The safe harbor speculation is just another theory justifying the hoped for Escrow Billions IMO. I understand the hope, but not the Logic, or conclusions based on the lack of supporting evidence.