Replies to post #619422 on Mr Cooper Group Inc (COOP)

[Royal Dude]

As the loans get paid off the original face or coupon value remains. The account should have the remaining cash. Total value as of 2008 remain. The statement that the value is diminish is as one would say "poor and irresponsible dd"

[AZCowboy]

~ ItsMyOption, Cryptic' ?, Is Merely A Case Of', "Misunderstood' Complex Issues" ~

Good morning AZ, to help everyone understand why these ABS diminish in value – let’s try this.

On every monthly mortgage payment one pays 3 payments, the #1 bank back to borrowed principal, #2 the investor of the loan back part of interest cost #3 the servicing company keeps about .25 - .50% as their mortgage servicing fee.

Now we take that 2nd payment for interest and it diminish each month as we pay our principal back. This is good as each month one pays off more principal and amount collected for interest diminish.

Now most of us believes that WMI retained or was an investor in each ABS trust – SO IMO someone has been collecting that interest and it would be considered Retained Earning.

AZ can you verify that is how it works and why these payment should diminish as they get paid off.

"ALL ABS-Certs" as well as The WMI related ABS-Certs' were and are packaged with different types and kinds of collateral based' loans, some Trusts are even divided by a states logistical area' ... at the onset of the packaged cert, there is a complete asset based value', ... then investors financially support these base valued offerings' with a percentage of their investment', ... as the Trust performs, the base values paid by the lenders', along with their interest collected, paid by the mortgagee', is paid back to the original investor' within the base values' ... monthly'

as the "Trust" continues to function, the original base value of the supporting remaining loans diminishes' ... thus diminishing the available returns back to the original investors' ... I'll post my example again for your review' ... Note the beginning values weighed against the current values' ...

Group 1 30YR JB A, NON-ALTA 2016
Group 2 30YR JB A, NON-ALTA 2017
Group 3 30YR JB A, NON-ALTA 2018
Group 4 30YR JB A, NON-ALTA 2019
Group 5 30YR JB A, NON-ALT

Now, Here is the result of the Trusts activity having been being diminished over the years, by paid off loans, refinanced loans, forclosures, etc. ... as the 03/25/2020 "Beginning Loan Count" is a mere fraction of the "Trusts" original offering' or loan count'

LOAN COUNT
Original Loan Count 2,201
Beginning Loan Count 20
Loans Added 0
Loans Paid-in-full 0
Loans Prepaid-in-full 0
Loans Liquidated-in-full 0
Loans Repurchased 0
Ending Loan Count 20

PRINCIPAL BALANCE
Original Scheduled Principal Balance $999,488,420.01
Beginning Scheduled Principal Balance $5,285,784.66
Scheduled Principal Received or Advanced $18,307.73
Unscheduled Principal $2,557.35
Prepayments-in-full $0.00
Liquidations-in-full $0.00
Repurchases $0.00
Principal Losses $0.00
Forborne Principal Recognized as Loss $0.00
Ending Scheduled Principal Balance $5,264,919.58

INTEREST
Accrued Interest at Gross Rate $22,164.05
Unscheduled Interest $0.00
Uncollected Interest $0.00
Uncompensated Interest Shortfall $13.15
Other Interest Shortfall $0.00

FEES
Servicing Fees $1,181.10
Other Fees $0.00
ADDITIONAL FUNDS / (EXPENSES)
Excess Liquidation Proceeds $0.00
Subsequent Recoveries $0.00
Prepayment Penalties $0.00
Interest Portion of Realized Loss $0.00
Advances Recovered $0.00
Trustee Legal Expense $0.00
Other Fees / (Expenses) $206.98

So, you can see why I do not believe all of the sloppy and poorly researched pie in the sky numbers, and / or material that simply is not accurate' ... the longer this process has gone on, the lower the amounts of loans remain within the functioning ABS-Cert WaMu Related Trusts'

once an ABS-Cert "Trust" has diminished in size to less than 10% of its original valuation at the time of its offering, ... the "Trust" can be dissolved' ... This is the reason I chose this particular Trust as an example' ...

"ALL" of the WMI related Trusts have diminished in size' ...

"it is what it is"

AZ