Nationstar Mortgage bid roughly $2.907 billion for the origination and servicing assets of Residential Capital Corp., about $93 million shy of the top bid placed by Ocwen Financial and its partner Walter Investment Management Corp., according to a memo on the deal provided to National Mortgage News.
The email, written by ResCap management and sent to employees, notes that Nationstar’s bid remains in place for 30 days should something change in regard to Ocwen’s offer.
“While Nationstar is a back-up-bidder, at this point in time it is ‘pencils down’ with the integration team,” management writes.
Early Wednesday afternoon, ResCap informed its employees that Ocwen was the winning bidder on the company. A unit of Ally Financial, ResCap has been operating under bankruptcy protection since earlier this year. (Ally, in turn, is 74% owned by the U.S. Treasury, which would like to take the bank holding company public.)
In the memo, ResCap tries to allay the fears of its employees concerning layoffs, informing them that “Given the scope of the U.S. footprint between ResCap, Ocwen and Walter we expect there will be ample employment opportunities.”
The company adds: “Ocwen has expressed an interest in expanding their on-shore presence and investing in new technology to benefit employees.”
The publicly traded, Ocwen, has a large servicing-related workforce overseas. According to some estimates, roughly 85% of its 5,300 employees are in India and Ecuador.
A few weeks back Ocwen agreed to buy Homeward Residential, a lender/servicer controlled by WL Ross & Co. Over the past three years it has been actively buying MSR portfolios and mortgage-related companies.