Hedge fund Cerberus Capital Management -- which controls GMAC Mortgage -- has agreed to buy Option One Mortgage Corp., Irvine, Calif., from H&R Block for just under $1 billion in cash.If Option One is combined with GMAC's mortgage unit, the new entity will challenge HSBC and Countrywide for the top slot among all subprime funders, according to figures compiled by the Quarterly Data Report. H&R Block said it would book a noncash pretax charge of up to $320 million on the sale. However, there is an "earn-out" clause tied to the net tangible value of Option One's assets at the time of closing. As of Jan. 31, H&R Block valued Option One's assets at $1.27 billion. Option One can be found online at http://www.optiononemortgage.com.
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The agreement, in which the real estate giant admits no wrongdoing, will cover around 70,000 agents.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
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Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
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Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
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Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
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Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
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