Replies to post #515967 on Mr Cooper Group Inc (COOP)

[jerrylev]

Thank you. That is good info.

So you estimate about 40B that JPM didn't get because they don't want it or it is not included in the 1.9B purchase price? Did JPM buy 258B in assets for 1.9B or do they have to pay more?

[LuckyPanda]

Justice, IMO, JPM only got the principle of the loans plus 1.8% interest ( which it owes to the deposit base). The rest of the 2.9% interest margin of the loan portfolio belonged to the estate in the form of securitized ABS. 2.9% margin on $300 billion portfolio after 10 years is like $80 billion...IMO, this is the pot of gold protected by safe harbor for the escrow holders...

Remember, the purpose of safe harbor is not to maximize profits for the estate. The main purpose of safe harbor is to protect the portfolio from untimely liquidation due to creditor demands in bankruptcy that could threaten the portfolio solvency against the liability it owes to the deposit base. The main purpose of safe harbor is to make sure FDIC protects the deposit base by making sure the portfolio runs its course and makes enough money to pay back deposit base.

However, a big side benefit for wamu escrow holders, is that we get the 2.9% interest profit margin also, as the portfolio slowly pays back principle plus 1.8% interest to the deposit base in safe harbor.

By protecting the deposit base, FDIC inadvertently protected the equity interest in the portfolio..the 2.9% interest profit margin that comes back to us in the form of securitized MBS.

[creyno58]

My opinion is that you are baiting people to expect a low ball offer.