The board of Residential Capital Corp. Thursday afternoon said it approved a $1.5 billion bid by insurance conglomerate Berkshire Hathaway to buy roughly 47,000 whole loans from the bankrupt mortgage company.
The sale will need final approval from the bankruptcy court which will hold a hearing on the bid Nov. 19.
Berkshire owns a division that invests in nonperforming mortgages and has toyed with the idea of entering the jumbo space. Early on it was considered a bidder for ResCap’s servicing and lending platform but then backed out of the deal. (Ocwen won the bid for those assets on Wednesday.)
Centerview Partners LLC and FTI Consulting are servicing as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap.