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 email@example.com
U.S. Bankruptcy Court Approves Sale of ResCap Mortgage Servicing and Origination Platform Assets to Ocwen and Walter Investment,
Press spacebar to pause and continue. Press esc to stop.