Replies to post #514641 on Mr Cooper Group Inc fka COOP

[jerrylev]

Mr Simpson, I find fascinating reading about how the deal was made because I didn't spend time reading the filings.

So it is NSM "begging" to merge with WMIH and not the other way around. I don't think that NSM needs the NOL so desperately which has only 1.2B in tax savings with the new tax law. I think there is something else. I speculate that there are some of our assets that were bought by JPM or KKR and NSM will service those loans. Then I speculate also that JPM will contract out their entire mortgage servicing to NSM/WMIH to do.

And WMIH, a company with almost zero income and revenue (on paper), can negotiate a loan with more favorable terms to pay off NSM debt.

The following is my little personal story to explain my speculation.

Last year I refinanced my home with a medium size company called Cardinal Financial from NC. I picked it just by chance after reading favorable reviews on Zillow. So the entire loan process was done online and by phone. I provided promptly all documents that they asked for and the entire refinance was done in less than 3 weeks, the fastest time I have ever seen.

So as soon as my loan was done, I got a payment coupon and it said "yourmortgageonline" and not Cardinal, so I said to myself that these guys are fast, they sold my loan as soon as they are done. Then I look up and see that https://yourmortgageonline.com/ is a loan servicing company and Cardinal Financial still owns my loan.

So these days, companies are outsourcing anything that they don't do best. NSM or Mr Cooper specializes in loan servicing and that's all they do and very efficiently.

So I speculate that KKR will buy our mortgage assets and let NSM/WMIH service them. In addition, KKR will sell MBS and does the loan financing while NSM/WMIH Mr Cooper will do the servicing. And in addition, we are now very friendly with JPM by signing the release. It is not like what some people think that we are still enemies. What happened 10 years ago was water under the bridge. And so JPM will contract out to NSM/WMIH Mr Cooper to service its entire mortgage loan portfolio while JPM concentrates on getting loans and financing them.

This is the reason why NSM wants us so badly and not because of the NOL. We can have many choices to pick somebody else other than NSM. If the deal with NSM is not good, it's not us SH who have any voice but it is the big guys like KKR, Citi, Tupper who will object to the deal.

So I think it's because our big guys approved the deal then it's a done deal. We have no fear that the NSM guys may vote NO.