On Oct. 23 advisors representing the bankrupt Residential Capital Corp. will auction off the firm’s massive residential servicing portfolio and what’s left of its origination arm, according to court documents.
The publicly traded Nationstar Mortgage Holdings remains as the ‘stalking horse’ bidder on the assets, and at least three other bidders are still interested, including Ocwen Financial Corp. and Berkshire Hathaway, investment banking sources told NMN.
However, a fourth and new bidder, believed to be a large hedge fund, has emerged, sources said.
One source noted that Fannie Mae, Freddie Mac and the Government National Mortgage Association must all approve the transfer of servicing rights tied to loans they guarantee.
A spokeswoman confirmed to NMN Thursday morning that the bid date is Oct. 23.
ResCap, a subsidiary of the government owned Ally Financial, services roughly $365 billion of home mortgages, according to figures compiled by
The lender/servicer filed for Chapter 11 bankruptcy protection in early May, leaving behind a trail of
In 2Q ResCap funded just $6 billion in home mortgages, a 50% decline from the same period a year earlier.
