NEW YORK--(BUSINESS WIRE)--Residential Capital, LLC (ResCap) has completed the sale of the servicing platform assets to Ocwen Loan Servicing, LLC, the mortgage servicing arm of Ocwen Financial Corporation. The United States Bankruptcy Court, Southern District of Manhattan had approved the sale of the assets last November.
“Today marks an important step in what has been a successful sale process for ResCap,” said ResCap Chief Executive Officer Thomas Marano. “Since the Court’s approval of the deal, our focus has been to ensure a smooth transition for homeowners and preserve value for our creditors.”
The sale of ResCap’s originations and capital markets platform to Walter Investment Management Corp., and the sale of a whole loan portfolio to Berkshire Hathaway were recently completed. The three sale transactions, in the aggregate, generated more than $4 billion in proceeds for the benefit of ResCap’s creditors and preserved more than 3,800 U.S. jobs.
“This complex transaction was settled in three components with three distinct purchasers, in cooperation with eight government agencies or regulatory authorities - all while keeping the business operating as a going concern,” Marano said. “This successful outcome is a direct result of the hard work our employees, leadership and advisors have dedicated over the last year.”
Centerview Partners LLC and FTI Consulting are acting as financial advisors to ResCap. Morrison & Foerster LLP is acting as legal advisor to ResCap. Morrison Cohen LLP is advising ResCap’s independent directors.
About Residential Capital (ResCap)
Residential Capital, LLC was one of the largest originators, sellers and servicers of residential mortgage loans in the United States, conducting its mortgage operations in recent years through GMAC Mortgage, a wholly owned subsidiary that is not affiliated with General Motors. ResCap was the first mortgage servicer to complete and exceeded the consumer relief obligations as part of the National Mortgage Settlement, providing $257.4 million in credited relief to borrowers across the nation. ResCap’s executive offices are located in New York City, and most of its retained operations are in Fort Washington, Pennsylvania and Minneapolis, Minnesota.