Replies to post #544318 on Mr Cooper Group Inc (COOP)

[etzetrade]

I wish I were wrong. The 484m+1b were the revenues(net gain for investor --WaMu) for sales of MBS in 2006 and 2007.

So, the net gain was 0.75% (1.5b / 200b= 0.75%) after all the expenses, including the service charge.

It is logic. If WMI held 20-25% of equity of MBS. So, the net gain by the investors in MBS is 0.75% divided by 20% equals to 3.75%, which was closed to the mortgage rate after deducting all the expenses.

Therefore, WMI accumulated annual revenue of 37.5b.

300 b x 0.75% x 10 years = 22.5b
Plus
1.5b x 10 years = 15b

Total 37.5 b cash in for us

[jerrylev]

The easiest estimate of how much assets there are is to look at the revenue that it generated, unless WAMU engaged in fraudulent tax evasion and does not report its income.

I don't think this is the case.

So while WAMU was alive, it generated between 484M to 1B of revenue from the securitization.

Assets cannot be valued more than the income it produces over 10-15 years? Or in mortgage time, it may be less.