Fear and Loathing for ResCap Employees?

It’s not easy being acquired – especially if your mortgage firm is being bought by a company that is well known for housing a large chunk of its workforce in India and Ecuador. (Ecuador?) Yesterday afternoon Ocwen Financial – the brainchild of former GE executive Bill Erbey – agreed to buy Residential Capital Corp. for $3 billion. To help ease the transition ResCap management (led by Tom Marano) tried to reassure the troops that they have a future at Ocwen, saying “Given the scope of the U.S. footprint between ResCap, Ocwen and Walter we expect there will be ample employment opportunities.” That may be so, but we know that Fannie Mae – which must approve the transfer of its servicing – is none too thrilled about Ocwen outsourcing so many jobs overseas. But maybe that’s why Ocwen’s partner (Walter) will be getting the Fannie MSRs. As for believing the email, one observer told us that ResCap’s remark reminds him of the Neville Chamberlain quote of September 1938: “I have returned from Germany with peace in our time.”