JPMorgan RMBS Settlement Allocation & Exhibits in Excel

Trustees go back to Court for instructions and Final Group Allocations just released

Last week, the trustees went before Judge Marcy S. Friedman of the Supreme Court of the State of New York seeking judicial instruction as to how to apply the JPMorgan RMBS settlement payout. In the petition filed, Exhibit A lists 270 trusts that the trustees are asking for judicial instruction. These 270 trusts are then listed on one or more of the Exhibits D-H, which relates to the different payout concerns and questions (see below). The payouts for these trusts are expected to be delayed at least 6 months.

Exhibit C lists the 49 trusts not covered under the petition and believed by the trustee to have no settlement payout issues. We expect these trusts to be paid out in the February 2018 remittance.

Excerpt from the Notice of Court Appearance

On December 15, 2017, the Trustees and Payment Administrators (collectively, the "Petitioners") commenced a judicial instruction proceeding pursuant to CPLR § 7701 concerning the administration and distribution of the Allocable Shares with respect to the Covered Settlement Trusts, captioned In the matter of application of Wells Fargo Bank, National Association, U.S. Bank National Association, The Bank of New York Mellon, The Bank of New York Mellon Trust Company, N.A., Wilmington Trust, National Association, HSBC Bank USA, N.A., and Deutsche Bank National Trust Company (Index. No. 657387/2017) (the "Article 77 Proceeding"), by filing a petition and related papers, in the Supreme Court of the State of New York, County of New York (the "Court"). The Article 77 Proceeding does not concern the Non-Covered Settlement Trusts.

Attached are the 1) Petition 2) Exhibits to the Petition 3) Notice of Appearance with Interim Order and 4) Finalized Group allocations just released on December 19, 2017.

Unfortunately, all this trust level data, including the final allocations, are delivered via a PDF. To assist our clients in making sense of this information, we pulled all the trust level data out of the PDFs into Excel, cleaned up the mess that resulted from the translation, verified the trust names, tied out the numbers back to the documents, and placed the data into a nicely formatted spreadsheet that you can search, sort or download onto your own database. We even set up filters to help you. In one consolidated sheet, for each deal/group, you can now see both the final allocation and any payout issues that exist.

Exhibits to the Petition filed on December 15, 2017

List of Settlement Trusts covered under petition [270 trusts]
Settlement Agreement
List of Non-Covered Settlement Trusts (not covered under petition and therefore no settlement payout issues) [49 trusts]
List of Settlement Trusts That Do Not Clearly Specify Whether the Pay First Method or the Write-Up First Method Should Be Used [242 trusts]
List of Settlement Trusts with Both (1) Subsequent Recovery Write-Up Instructions That Apply Only to Subordinate Classes and Write-Up Instructions That Apply Only to Subordinate Classes And (2) Provisions That Apply Losses to Senior Classes [82 trusts]
List of Settlement Trusts with Realized Loss Allocation Methods That Differ from Subsequent Recovery Write-Up Methods [176 trusts]
List of Settlement Trusts With (1) Retired Class Provisions and/or (2) Class A Redirection Provisions [68 trusts]
List of Settlement Trusts for Which Subsequent Recoveries Appear to Be Treated as Interest Collections and Not Principal Collections [3 trusts]

Have a Happy Holiday. Enjoy the time off. We expect the December 2017 remittance data to be delivered to us the evening of 12/26.