Court OKs Conseco Sale

The Bankruptcy Court in Chicago has approved the sale of Conseco Finance Inc., St. Paul, Minn., to CFN Investment Holdings LLC, New York, for $1.1 billion.Judge Carol Doyle approved the transaction after CFN sweetened its bid by $85 million, and CFN worked out an agreement with Fannie Mae over the $23 billion manufactured housing servicing portfolio. According to published reports, Fannie Mae agreed to a deal that allows CFN to have an increased servicing fee of 125 basis points for the first 12 months after the deal closes. After that, the fee drops to 115 bps. "From the outset we have sought an effective long-term servicer of these assets, and that has been achieved," said Chuck Greener, Fannie Mae’s senior vice president for communications. Fannie's review of the new servicing protocol "gives us confidence that the manufactured housing securities will be serviced in an efficient and effective manner," he said. CFN consists of J.C. Flowers & Co. LLC, Birmingham, Ala.; and Fortress Investment Group LLC and Cerberus Capital Management, both of New York.