EX-99.3 4 d389108dex993.htm UNAUDITED BALANCE SHEET AS OF JUNE 30, 2012

Unaudited Balance Sheet as of June 30, 2012

Exhibit 99.3

WM MORTGAGE REINSURANCE COMPANY INC.

BALANCE SHEET

AS OF JUNE 30, 2012

(UNAUDITED)

		MODIFIED GAAP BALANCE SHEET
ASSETS
CASH & CASH EQUIVALENTS			6,688,792
INVESTMENTS			15,889,585
INVESTMENTS HELD IN TRUST			306,211,662
ACCRUED INTEREST			2,605,233
REINSURANCE PREMIUMS RECEIVABLE			1,386,507
OTHER RECEIVABLES			0
DEFERRED FEDERAL INCOME TAX			0
VALUATION ALLOWANCE FOR DEFERRED TAX			(13,441,782	)
DEFERRED TAX ASSETS			13,441,782
TOTAL ASSETS			332,781,779
LIABILITIES AND STOCKHOLDER’S EQUITY
LIABILITIES:
ACCRUED EXPENSES			164,981
ACCRUED INVESTMENT EXPENSES			54,754
ACCRUED ADMINISTRATIVE FEES			110,000
ACCRUED CEDING FEES			126,690
PREMIUM TAX PAYABLE			0
FEDERAL INCOME TAX PAYABLE (RECEIVABLE)			0
ALLOWANCE FOR DOUBTFUL ACCOUNTS			0
CONTINGENT LIABILITY			4,000,000
INTEREST PAYABLE			0
UNEARNED PREMIUMS			357,470
LOSSES PAYABLE			3,232,745
LOSS RESERVES			114,401,873
IBNR			5,429,591
CONTINGENCY RESERVES			49,403,568
TOTAL LIABILITIES			177,281,674
STOCKHOLDER’S EQUITY:
CAPITAL STOCK			1,000
PAID-IN CAPITAL			16,659,349
ADDITIONAL PAID-IN CAPITAL			53,219,568
UNREALIZED GAIN/LOSS ON INVESTMENTS			0
CONTINGENCY RESERVES			(49,403,568	)
DIVIDENDS PAID			(250,000	)
RETAINED EARNINGS (ACCUMULATED DEFICIT)			130,885,964
NET INCOME (LOSS) - YEAR TO DATE			4,387,792
TOTAL STOCKHOLDER’S EQUITY			155,500,105
TOTAL LIABILITIES & STOCKHOLDER’S EQUITY			332,781,779

WM MORTGAGE REINSURANCE COMPANY INC.

UNAUDITED FINANCIAL STATEMENTS

COMBINING PROFIT & LOSS STATEMENT

FOR THE PERIOD ENDED JUNE 30, 2012

		MONTH TO DATE				YEAR TO DATE
UNDERWRITING INCOME:
ASSUMED PREMIUMS WRITTEN			1,331,676				12,365,436
CHANGE IN UNEARNED PREMIUMS			19,954				98,466
NET PREMIUMS EARNED			1,351,631				12,463,902
UNDERWRITING EXPENSES:
LOSSES PAID			3,232,746				30,964,875
PROVISION FOR LOSS RESERVES			(632,589	)			(18,070,479	)
PROVISION FOR IBNR			(233,324	)			(1,117,339	)
CEDING COMMISSION			126,690				1,502,848
PREMIUM TAX EXPENSE			—				—
TOTAL UNDERWRITING EXPENSES			2,493,524				13,279,906
UNDERWRITING INCOME (LOSS)			(1,141,893	)			(816,004	)
GENERAL & ADMINISTRATIVE EXPENSES:
MANAGEMENT FEES			33,372				116,822
ACTUARY CONSULTING FEES			22,500				139,670
AUDIT FEES			51,500				154,500
LEGAL FEES			12,068				47,281
ADMINISTRATIVE FEES			110,000				372,581
LICENSE AND FEES			—				300
TRAVEL AND ENTERTAINMENT			—				—
BANK SERVICE FEES			409				1,238
MISCELLANEOUS EXPENSES			—				—
TOTAL GENERAL & ADMINISTRATIVE EXPENSES			229,848				832,391
INTEREST EXPENSE			—				—
INTEREST INCOME			822				6,677
AMORTIZATION - COMMERCIAL PAPER			—				—
INVESTMENT INCOME - MUNICIPAL BONDS			—				—
INVESTMENT INCOME - CORPORATE BONDS			518,716				2,974,638
INVESTMENT INCOME - MBS BONDS			75,752				440,251
INVESTMENT INCOME - US AGENCY			250,763				1,686,961
INVESTMENT INCOME - US TREASURY			76				465
INVESTMENT INCOME - FOREIGN ISSUE			82,242				578,240
BOND AMORTIZATION - MUNICIPAL BONDS			—				—
BOND AMORTIZATION - CORPORATE BONDS			(132,113	)			(779,666	)
BOND AMORTIZATION - MBS BONDS			(2,872	)			(5,997	)
BOND AMORTIZATION - US AGENCY			(32,694	)			(234,137	)
BOND AMORTIZATION - US TREASURY			(11	)			(69	)
BOND AMORTIZATION - FOREIGN ISSUE			(44,293	)			(211,494	)
INVESTMENT EXPENSE			(54,754	)			(188,351	)
GAIN/LOSS ON SALE OF INVESTMENT			158,023				446,866
FAS 159 GAIN ON TRADING SECURITIES			20,782				1,321,802
NET INVESTMENT INCOME			840,440				6,036,187
LEGAL SETTLEMENT			—				—
INCOME (LOSS) BEFORE TAX PROVISION			(531,302	)			4,387,792
CURRENT FEDERAL INCOME TAX (BENEFIT) EXPENSE			—				—
PROVISION FOR DOUBTFUL INCOME TAX RECEIVABLE			—				—
DEFERRED FEDERAL INCOME TAX (BENEFIT) EXPENSE			(177,831	)			1,543,795
CHANGE IN VALUATION ALLOWANCE			177,831				(1,543,795	)
FEDERAL INCOME TAX EXPENSE			—				—
NET INCOME (LOSS)			(531,302	)			4,387,792