U.S. Bankruptcy Court Approves Sale of ResCap Mortgage Servicing and Origination Platform Assets to Ocwen and Walter Investment,

  U.S. Bankruptcy Court Approves Sale of ResCap Mortgage Servicing and
  Origination Platform Assets to Ocwen and Walter Investment, and Sale of
  Whole Loan Portfolio to Berkshire Hathaway

Business Wire

NEW YORK -- November 21, 2012

The United States Bankruptcy Court, Southern District of New York, has
approved the sale of the Residential Capital, LLC’s (ResCap) mortgage
servicing and origination platform assets to Ocwen Loan Servicing, LLC and
Walter Investment Management Corporation. The Court also approved the sale of
ResCap’s whole loan portfolio to Berkshire Hathaway. The case, number 12-12020
(MG), is presided over by the Honorable Judge Martin Glenn.

“We are very pleased to have obtained the Court’s approval as it has resulted
in the best possible outcome for our creditors,” said ResCap Chief Executive
Officer Thomas Marano. “Working closely with Berkshire Hathaway and both Ocwen
and Walter Investment, the ResCap management team will create a smooth
transition for our employees and ensure the servicing transfer is as seamless
as possible for homeowners.”

The Court-approved joint bid from Ocwen and Walter is a total purchase price
of $3 billion. The Court-approved bid from Berkshire Hathaway is a purchase
price of $1.5 billion for a loan portfolio made up of approximately 50,000
whole loans. The sale of the assets, subject to satisfaction of customary
closing conditions including certain third party consents, is expected to
close in the first quarter of 2013.

Centerview Partners LLC and FTI Consulting are acting as financial advisors to
ResCap. Morrison & Foerster LLP is acting as legal advisor to ResCap. Morrison
Cohen LLP is advising ResCap’s independent directors.

About Residential Capital (ResCap)

Residential Capital, LLC is one of the largest originators, sellers and
servicers of residential mortgage loans in the United States. ResCap is a
wholly owned subsidiary of Ally Financial Inc. ResCap conducts certain of its
mortgage operations through GMAC Mortgage, a wholly owned subsidiary that is
not affiliated with General Motors. ResCap is an approved Fannie Mae and
Freddie Mac servicer and approved issuer for Ginnie Mae.

ResCap is a leader in facilitating mortgage refinancing and mortgage
modifications through HAMP and other government programs. At March 31, 2012,
ResCap was servicing over 2.4 million mortgage loans, with an aggregate unpaid
principal balance of approximately $374 billion. Of these, approximately 68%
of the loans (by unpaid principal balance) are owned, insured or guaranteed by
Fannie Mae, Freddie Mac or Ginnie Mae. Since 2008, GMAC Mortgage has executed
over 784,000 default workouts for borrowers. GMAC Mortgage is a leading HAMP
participant and has effected more than 51,000 permanent HAMP modifications to
date. GMAC Mortgage was the first major originator of loans to roll out the
Treasury’s HAMP 2.0 program. ResCap’s executive offices are located in New
York City, and it has major operations in Fort Washington, Pennsylvania,
Minneapolis, Minnesota, Waterloo, Iowa, Dallas, Texas, and Burbank,
California.

Contact:

Residential Capital, LLC
Susan Fitzpatrick, 215-734-4400
Director of Communications
susan.fitzpatrick@gmacrescap.com
 
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