ResCap CEO Tom Marano Resigns; Remains a Member of the Board of Directors

  ResCap CEO Tom Marano Resigns; Remains a Member of the Board of Directors  Business Wire  NEW YORK -- May 06, 2013  Thomas Marano has resigned as CEO of Residential Capital, or ResCap. Marano joined ResCap in August 2008. ResCap, then the fifth-largest servicer of residential mortgage loans in the United States and a leading mortgage loan originator, predictably suffered during the financial crisis. From 2008 to 2011, Marano implemented a significant restructuring of ResCap’s servicing and origination business, which required the disposition of various non-strategic foreign and domestic business lines and portfolios. Marano established new underwriting criteria and introduced new servicing protocols designed to strengthen the company’s domestic origination and servicing business. During his tenure, ResCap was a leader in facilitating mortgage modifications for troubled borrowers. Nearly 1 million homeowners received mortgage modifications, and ResCap originated approximately $200 billion in new residential mortgage loans.  Like many others in the mortgage industry, ResCap faced considerable regulatory and litigation exposures. In 2012, parent company Ally withdrew its support for ResCap due to, among other things, rep-and-warranty liability concerns, which liabilities were created during the 2005 through 2007 origination years. In May 2012, after having pursued various strategic alternatives, ResCap filed for bankruptcy. Marano guided ResCap through successful bankruptcy asset sales to Ocwen Loan Servicing, LLC, Walter Management Investment Corp. and Berkshire Hathaway Inc. These asset sales generated proceeds in excess of $4 billion dollars, and preserved 3,750 of 3,900 U.S.-based jobs. Marano has agreed to stay on as an outside director of ResCap in order to facilitate a smooth transition for the bankruptcy estate, while he pursues other interests. The ResCap estate also will benefit from having Tammy Hamzehpour, former general counsel, working closely going forward on restructuring and wind down matters with Chief Restructuring Officer Lewis Kruger. Hamzehpour will function as ResCap’s Chief Business Officer.  Contact:  Rubenstein Alex Stockham, 646-251-3736  
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