MAY 14, 2012
What We're Hearing

What Does ResCap’s BK/Sale Really Mean?

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Tom Marano and company tried like the dickens to avoid throwing Residential Capital Corp./GMAC into bankruptcy but it was not to be. So, in the end we have a deal that values its mortgage assets at just over $4 billion, which means its MSRs might be worth 100 basis points or so. But as we all know: production assets never sell at a premium in a down market. Why pay up when you can just take over the leases and rehire loan officers and AEs? But what does the eventual resolution of ResCap really mean? Answer: A new, stronger competitor (Nationstar) could rise from the ashes. (If Dan Mudd was still at Fortress -- which owns a piece of Nationstar -- he might be considered the “Comeback Kid.”) One piece of good news from the announced deal: Marano is saying no layoffs will occur. (See the National Mortgage News website for expanded coverage.)

 

 

Comments (1)
No layoffs. Probably baloney! Always said to keep people from running for the hills. Executives hate having to make that statement, but it seems that Investors come before employees almost all the time!!!!
Posted by Robert Rosen | Monday, May 14 2012 at 4:01PM ET
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