Replies to post #515443 on Mr Cooper Group Inc (COOP)

[2221]

Thank you Dmdmd2020 for you post ..I have question are the escrow distribution tied up to the IRS 3 years extension to the trust ?? Sounds like we may end up waiting up to 3 years ??

[jerrylev]

Re: 2). When will beneficial interest assets from MBS Trusts return to WMILT? I don't know, but I'm willing to wait for as long as possible...and the IRS is waiting for another 3 more years to get its taxes from it.

Perhaps a little bit of clarification...

"the IRS is waiting for another 3 more years to get ALL of tis taxes from it. "

I hope that the LTI will distribute money it already has and distribute the rest in 3 years. We may have the IRS coming to our help, i.e. the trust has to pay tax as soon as it has money in its hand. It's like if you have huge income from the sale of stocks, you have to pay tax now every quarter but not wait until the end of the year to pay.

Just like my PIERS distribution, I received it in installments from 2013-2014 until now but I didn't receive one lump sum all at once.

And the LTI once it gives you LTI, it will pay interest at FJR on the money it has not paid yet, and so if we talk about billions of dollars then the interest money will add up albeit at FJR rate.

[Dmdmd2020]

IMO...If you believe that the following IRS Letter pertains to WMILT (which I do), then the following on page 4 and 5 gives specific number of outstanding issues that have been unresolved.

https://www.irs.gov/pub/irs-wd/201808004.pdf

Starting on page 4:

"Trust represents that the trustee and the trust advisory board have been working in an expeditious, commercially reasonable manner to monetize assets, to analyze and pursue any valid causes of action (including, without limitation, tax refund claims, preference actions, and potential causes of action against former directors and officers of W) and to investigate, prosecute and/or resolve disputed claims against Debtors. However, two principal outstanding matters have not concluded and are not expected to conclude by Date9, including the reconciliation of disputed claims filed against Debtors by former employees of Debtors and two claims pending in litigation with respect to federal and state income tax refunds. Accordingly, Trust represents that it is impossible for Trust to completely liquidate by Date9.

Under Article III of Trust Agreement, multiple extensions of Trust’s term may be obtained so long as Bankruptcy Court approval is obtained on a date within the period six months prior to the expiration of each extended term, and the extension is necessary to facilitate or complete the recovery and liquidation of Trust assets.

LAW AND ANALYSIS

Section 301.7701-4(d) provides that certain organizations which are commonly known as liquidating trusts are treated as trusts for purposes of the Internal Revenue Code. An organization will be considered a liquidating trust if it is organized for the primary purpose of liquidating and distributing the assets transferred to it, and if its activities are all reasonably necessary to, and consistent with, the accomplishment of that purpose. A liquidating trust is treated as a trust for purposes of the Code if it is formed with the objective of liquidating particular assets and not as an organization having as its purposes the carrying on a profit-making business which normally would be conducted through business organizations classified as corporations or partnerships. However, if the liquidation is unreasonably prolonged or if the liquidation purpose becomes so obscure by business activities that the declared purpose of liquidation can be said to be lost or abandoned, the status of the organization will no longer be that of a liquidating trust.

Rev. Proc. 94-45 provides the conditions under which the Service will consider issuing advance rulings classifying certain trusts as liquidating trusts under § 301.77014(d).

Section 3.06 of Rev. Proc. 94-45 provides that the trust instrument must contain a fixed or determinable termination date that is generally not more than five years from the date of creation of the trust and that is reasonable based on all the facts and ..."

Page 5

"...circumstances. If warranted by the facts and circumstances, provided for in the plan and trust instrument, and subject to the approval of the Bankruptcy Court with jurisdiction over the case upon a finding that the extension is necessary to the liquidating purpose of the trust, the term of the trust may be extended for a finite term based on its particular facts and circumstances. The trust instrument must require that each extension be approved by the court within 6 months of the beginning of the extended term."

_____________

IMO...Conclusions:

1) Per the IRS Letter, it states that there are a total of 5 outstanding issues/claims.

a) "principal matter" #1
b) "principal matter" #2
c) "claims filed against Debtors by former employees of Debtors"
d) and e) "two claims pending in litigation with respect to federal
and state income tax refunds"

2) My questions:

a) What is "principal matter" #1 that is outstanding?
b) What is "principal matter" #2 that is outstanding?

3) IMO...Obviously the 3 year extension is not an arbitrary duration, it coincides with time line estimations given by WMILT.

[Dmdmd2020]

I posted the following on boardpost.net earlier today:

https://www.boardpost.net/forum/index.php?topic=12420.msg212842#msg212842


"Thank you CSNY for pointing out the page numbers regarding the loan originations via WMI (WMB + WMB Fsb)
I am going to use the following link regarding the Sub Committee hearing in 2010:

https://archive.nytimes.com/www.nytimes.com/interactive/2011/04/14/business/14crisis-docviewer.html

Page 142 (PDF page 145 of 652)

The chart states a total of $124.4 billion (Sold to Freddie Mac) + $380.1 billion (Sold to Fannie Mae) = $504.5 billion mortgages sold to Freddie and Fannie

$504.5 billion is 27.3% of the "Total WaMu Originations Sold to GSEs"

$504. 5 billion / X  = 27.3% / 100%

X = $1.8479 Trillion total WAMU mortgage loan originations  from 2000-2008

______________________

On a previous post I had on boardpost.net as of August 23, 2014:

https://www.boardpost.net/forum/index.php?topic=6028.msg75692#msg75692

Link for WMB :

file:///C:/Users/penta/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Downloads/Washington%20Mutual%20Bank%20TFR%20June%2030%202008.pdf

Link for WMB Fsb:

file:///C:/Users/penta/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Downloads/Washington%20Mutual%20Bank%20FSB_.pdf

"iPrelude...thank you for the above links.  I tabulated some important asset figures according to the two above links.

Per OTS as of 30Jun2008 (In Thousands)


                                                                               WMB                                WMB, FSB

Cash, Deposits & Investment Securities                       $17,316,903                    $7,160,335

Mortgage-Backed Securities                                        $18,896,245                   $16,877,894

Mortgage Loans                                                         $222,681,859                 $8,644,219

Nonmortgage Loans                                                  $11,783,070                   $11,898,262

Repossessed Assets                                                  $1,531,807                     $253

Real Estate Held for Investment                                 $5,185                           $0

Equity Investments Not Subject to FASB Statement No. 115      $5,493,079            $676,707

Office Premises and Equipment                                  $2,542,547                     $8,641

Other Assets                                                            $26,770,919                   $781,696

Total Assets                                                             $307,021,614                 $46,048,007


CONCLUSIONS...IMO:

1)  The OTS fact sheet that was published as of 25Sep2008 (which stated assets = $307 billion), was only for WMB and it did not include WMB, FSB.
2)  The St. Louis Fed's number of $350 billion for "WMB, FSB" assets  was for the total assets of WMB + WMB, FSB. ($307,021,61 + $46,048,007 = $353,069,871)
3) I am more inclined to believe the $350 billion published by the St. Louis Fed as of 2010. 
http://research.stlouisfed.org/publications/review/10/09/Aubuchon.pdf
Table 2 on page 10

4)  Per the 2009 JPM Annual Report:

http://files.shareholder.com/downloads/ONE/0x0x362439/a51db960-bda2-4e30-aacd-3c761b81ba75/2009_AR.pdf

PDF Page 29/260:

"Our fortress balance sheet enabled us to buy
Bear Stearns in March 2008, adding $289
billion in assets; then we acquired Washington
Mutual just six months later, adding a further
$264 billion of assets."

 JPM claimed on their 2009 annual report that they acquired $264 billion of WAMU assets as of 25Sep2008. Thus $350 billion - $264 billion = $ 86 billion (residual in FDIC-R)"

_______________________________________

IMO....Conclusions (as of April 05, 2018):

1) Total WMI/WAMU (WMB + WMB Fsb) loan originations from 2000-2008 is $1.8479 Trillion

2) Total Assets from MBS beneficial interests owned by WMI/Escrow Marker Holders

$18.896245 billion +  $16.877894 billion = $35.774139 billion

$35.774139 billion x 3% annually compounded x 9 years = $46.677137 billion (bankruptcy remote)

3) Total Mortgage Loans under WMI (WMB + WMB Fsb)

$222.681859 billion +  $8.644219 billion = $231.326078 billion

$231.326078 billion x 3% annually compounded x 9 years = $301.828063 billion

If one believes that a Final Payment from JPMC needs to compensate for the mortgage loans, then JMPC would have to pay $301.828063 billion less $1.9 billion (Initial payment from the Purchase & Assumption Agreement)"