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Replies to post #665430 on Mr Cooper Group Inc (COOP)
JusticeWillWin
08/05/21 2:45 AM
#665432 RE: hotmeat #665430
I'd add that due to the tax planning strategies we put in place, the composition of the DTA is changing. We've converted roughly 1/3 of the DTA from NOLs associated with the WMIH merger, which have expiration dates to ordinary NOLs, which never expire, and that conversion will continue over the next two years or so.
We wouldn't do an acquisition just to accelerate the use of the DTA. We think now that we have been actively converting the DTA from an NOL to temporary difference DTA, what we've done is-and we expect that to be completed even faster than we thought, probably by the end of this year. So, that will lock in a permanent asset for us and while we'd love to use it as quickly as possible and convert it to cash, outside of looking at opportunities to optimize profitability in the company, we don't have any special plan to just try to accelerate that.
As a reminder, most of the DTA, in fact, is only a small piece that remains as NOL, but the restrictions really are behind us now.
So the NOLS only make up a small part of COOP's Deferred Tax Assets??? Am I reading that point right???