Replies to post #649575 on Mr Cooper Group Inc (COOP)

[AZCowboy]

~ ItsMyOption Correct, BoardDork's Applied Term "Unconsolidated Subsidiary" IS Perfect, As It Is Applied To The WMI Preferred Managing Sub, Again Obviously Functioning OUTSIDE Of The WMI Holding Company's BK's ~

AZ

[boarddork]

Thx! I finally sat down to read the latest 10-K filing this morning. I was struck how the word "Consolidated" was used often by both WMIH and it's auditing accounting firm, to define the degree of complete/ incompleteness of the audit and the filings.

Using consolidated so specifically, alluded that the opposite could be true as well. So I looked it up to see if Unconsolidated Subsidiarys do exist, and they do,. It's quite common.

To me, there's no reason to think that's not the hide-the-sausage game they have played amongst themselves to date...

Something to think about.... Unconsolidated Subs are used to hide liability so as not to reflect poorly on your Consolidated Books. DTC tracking marker value owed to those who released, is a future liability at some point in the future, against legacy assets returning to the old debtor after BK. And maybe WMIH/KKR is using as collatoral for Merger/Acquistions, this asset pool that largely(at the moment until disbursed) belongs to those who released. Certainly it had to have been the virtual collatoral fagainst loans for WMIH to Acquire Nationstar. SO I'd bet its still 100% being withheld for this future acquisition purpose...maybe until WMIH's balance sheet after growing Nationstar is strong enough to borrow on it own, without using any unconsolidated subs as collatoral.

Even if WMIH controls < 20% compared to legacy who released, they could be playing fast and loose with usage of it for growing COOP while they can, at our expense. If a person sells a house for $2M, that had a private mortgage note for $1.5M......that person could delay repaying that note just long enough to qualify for buying their next new home and mortgage.....so it looked like they had $2M in cash, when in fact they only had $500k.

The longer they hide it from us as an Unconsolidated subsidiary asset, the longer they get to use it. It's like free gas for the estate attorney's cars, when we the heirs haven't been told yet that what we actually inherited, is a gas station. All we got was a letter verifying inheritance rights to the estate after the specifics gets sorted out.

We just need to blow the doors open, and light a fire!

[boarddork]

And that's the rub......They don't have to report under the literal usage of the term Unconsolidated Subsidiary. You won't even see that term, because if there is value, it can be reported (hidden in plain sight) under 'historical value' or 'purchase price' within the Consolidated filing. But what if that value is at the moment...zero?

My posit, was to say the value is zero at the moment, like we see in our DTC escrow accounts, then technically there is nothing to report at all ! catch my drift? If 3rd party trustees haven't released 12 years accumulated interest yet, then what is holdup? If the 3rd party trustees just now released 12 years accumulated interest, how long can WMIH delay passing it on? One reporting quarter?

Its like WMIH has legacy who released in a Catch 22. We know its there, because we have DTC markers. But we don't know what we got or when, because the current value is stated as zero.

This is the nut shell game WMIH is playing.

My question is what can we do to escape this whirlpool we keep circling around in?