OCT 17, 2012
What We're Hearing

And the Winning Bidder on ResCap Is…

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The answer to that question is: Nationstar Mortgage. At least that’s what several M&A advisors are predicting. The bid is next week and even after the deadline passes we probably won’t know for another five days or so. (Note: the Mortgage Bankers Association hosts its annual convention in Chicago Sunday to Wednesday. The auction is set for Tuesday.) From what we’re told, Nationstar has ample financial backing, as does its chief competitor, Ocwen Financial. And it doesn’t hurt Nationstar’s position in the least that its stock has almost tripled to $33 since its IPO back in March. Fortress, which controls most of Nationstar, must be feeling good about itself. If only Daniel Mudd were still at Fortress but company co-chair Wesley Robert Edens was only going to allow for so much negative press surrounding Mudd who is fighting a lawsuit from his days as Fannie Mae’s CEO. (Mudd was there when the feds walked into Fannie in Sept. 2008 and told him to scram.) And isn’t it interesting how Nationstar is so tight with Fannie? How many ex-Fannie employees does Nationstar have/had? Point of information: Ocwen is tight with Freddie. And ResCap owns plenty of Fannie/Freddie servicing rights. So, if Nationstar doesn’t win ResCap, it will be Ocwen. Right? Or will Warren Buffett or someone else prevail?

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