Walter Investment Management Corp. Announces Bankruptcy Court Approval of
TAMPA, Fla., Nov. 21, 2012
TAMPA, Fla., Nov. 21, 2012 /PRNewswire/ --Walter Investment Management Corp.
(NYSE MKT: WAC) today announced that its joint bid with Ocwen Loan Servicing,
LLC for the mortgage servicing and origination platform assets of Residential
Capital, LLC (ResCap) was approved by the U.S. Bankruptcy Court for the
Southern District of New York. The transaction is expected to close in the
first quarter of 2013.
Under the joint bidding arrangement, Walter Investment Management Corp. will
acquire the Fannie Mae mortgage servicing rights (MSR) portion of ResCap's
servicing portfolio, representing approximately $50.4 billion in unpaid
principal balance (UPB) at August 31, 2012, related servicing advances, as
well as the origination and capital markets platforms.
"The Bankruptcy Court's confirmation of our joint bid is an important step
towards closing the transaction," said Mark J. O'Brien, Chairman and Chief
Executive Officer of Walter Investment. "We look forward to leveraging the
ResCap originations platform to profitably achieve additional scale in our
originations business and anticipate that in combination with the acquisition
of the Fannie Mae MSR the transaction will be meaningfully accretive to our
business and drive considerable value for our shareholders."
Closing of the transaction remains subject to the satisfaction of a number of
conditions to closing contained in the purchase agreement, including the
receipt of various government consents.
About Walter Investment Management Corp.
Walter Investment Management Corp. is an asset manager, mortgage servicer and
mortgage portfolio owner specializing in less-than-prime, non-conforming and
other credit-challenged mortgage assets. Based in Tampa, Fla., the Company has
over 2,600 employees and services a diverse loan portfolio. For more
information about Walter Investment Management Corp., please visit the
Company's website at www.walterinvestment.com.
Disclaimer and Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, including
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements include, but
are not limited to, statements concerning Walter Investment's plans, beliefs,
objectives, expectations and intentions and other statements that are not
historical or current facts. Forward-looking statements are based on Walter
Investment's current expectations and involve risks and uncertainties that
could cause actual results to differ materially from those expressed or
implied in such forward-looking statements. Factors that could cause Walter
Investment's results to differ materially from current expectations include,
but are not limited to: the expiration of the appeal period of the Bankruptcy
Court's Order, the resolution of all outstanding claims in the bankruptcy
case, the satisfaction of all conditions to closing the transaction, Walter
Investment's ability to efficiently transfer the acquired assets and the
originations platform, the ability of Walter Investment to achieve the
revenues and synergies that it expects from the acquired assets, the ability
of Walter Investment to retain key personnel from both the acquired ResCap
platforms and within its own organization, potential disruption in Walter
Investment's business as it seeks to close the transaction, transfer the
purchased accounts and establish the originations and capital markets
platforms; and other factors detailed in Walter Investment's 2011 Annual
Report on Form 10-K and other periodic reports filed with the U.S. Securities
and Exchange Commission. In addition, these statements are based on a number
of assumptions that are subject to change. Accordingly, actual results may be
materially higher or lower than those projected. The inclusion of such
projections herein should not be regarded as a representation by Walter
Investment that the projections will prove to be correct. This press release
speaks only as of this date. Walter Investment disclaims any duty to update
the information herein.
SOURCE Walter Investment Management Corp.
Contact: Investor and Media Contact - Whitney Finch, Vice President of
Investor Relations, +1-813-421-7694, firstname.lastname@example.org
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