What we see here is WaMu was servicing, in the period ending June 30th, 2008...
449.1 Billion in Mortgages (for others!)
Those Mortgage Servicing Rights were valued at Fair Value of 6.175 billion.
JPM claimed on their 10k that they got 165 billion in Private Label Securities from WaMu.
449.1 billion - 165 billion= 284.1 billion in mortgages serviced for others.
Representing roughly (284.1/449.1) X 6.175=3.9 billion in Mortgage Servicing Rights at fair value.
They didn't go to JPM. So they must be at FDIC Receiver. That's roughly 3.9 billion in MSR value sitting at FDIC. Above that JPM needs to pay FDIC 2.2 billion in fair value according to schedule 3.2 from the P&AA (Purchase price of assets).
Point of interest #2:
This is HUGE IMHO.
Remember the PCI loans, which were valued at roughly 81 billion and "acquired" from WaMu by JPM?
JPM got to cherrypick assets, so they "picked" these 81 billion in portfolio mortgage loans of the 233.4 billion in mortgages WaMu had in Portfolio, AND WERE BACKED WITH REAL ESTATE.
IMO, that leaves 152.4 billion in portfolio mortgages sitting at FDIC receiver.
BUT, here's where it gets interesting,
these 81 billion in purchased credit impaired loans,
pooled and accounted for on a seperate basis by JPM,
are NOT pooled and accounted for seperately without an appearant reason.
In my opinion, these are purchased assets, but credit impaired.
It means that these loans were bought by JPM, but because these were credit impaired, the fair value (and thus the purchase purchase price, according to schedule 3.2 of P&AA) of these had to be determined at a later time.
Just google what purchased credit impaired loans/assets are and you'll understand what I mean.
This includes everything: amortization, repayment, interest payment, foreclosure/liquidation. All the PCI loans were lumped together, because they got acquired in the same fiscal quarter. And all cash or interest payment has to be accounted for in the determination of Fair Value.
NOW the problem is:
Of these 81 billion PCI loans in 2008, there is 46.7 billion still left with a weighted average maturity life of 8 years.
My guesstimation is that fair value of this portfolio can be assessed at a minimum of 8 years in the future.
What is interesting is the roughly 152.4 in assets that didn't go to JPM.
In this case also the 110 billion in mortgages, which were NOT included in the PCI portfolio!
Still at FDIC? What did FDIC do with it? Did they use JPM to service the loans, collect payments, amortizations, interest and what not (but kept the assets off balance at FDIC?).
Are they being sold for fair value? Or are they being sold to WMIH? Sold to Fannie Mae? WHAT IS HAPPENING WITH OUR ASSETS AND WHEN DO WE SEE OUR MONEY?
In my honest and humble opinion:
284 billion in mortgages serviced for others, representing 3.9 billion in mortgage servicing rights at fair value.
AND At least 110 billion in mortgages backed by real estate.
Are sitting OFF BALANCE at FDIC Receiver!
Not to mention:
165 billion in mortgages serviced for others, representing 2.2 billion in mortgage servicing rights at fair value.
AND At least 81 billion in mortgages backed by real estate.
Are sitting at OFF Balance at JPM.
I hope this shines a light, why there was no 3.1a list of assets in the P&AA. A scrivenor's error.... how convenient.
I hope this also shines a light why FDIC does not disclose this kind of numbers in their quarterly balance sheet summary.
I hope this also shines a light where the FDIC Subrogated Claim of roughly 151 billion comes from, after all, ALL the deposits went to JPM so why would there be a deposit claim of 151 billion!!! JPM is too big to fail anyway.
Or this 151 billion claim (liability!) kept in place to leverage and counterbalance 151+ billion in (OFF BALANCE) assets?
ALSO NOTICE THAT THE 151.15 billion in FDIC Subrogated Claims, plus the 13.815 billion in other claims EQUALS TO:
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