Residential Capital completes sale of servicing assets to Ocwen Loan

By Caroline Salls

Pittsburgh, Feb. 15 - Residential Capital, LLC has completed the sale of its servicing platform assets to Ocwen Loan Servicing, LLC, the mortgage servicing arm of Ocwen Financial Corp., according to a company news release.

The U.S. Bankruptcy Court for the Southern District of New York approved the sale in November.

"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," ResCap chief executive officer Thomas Marano said in the release.

The company said the sale of its 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 generated more than $4 billion in total proceeds for the benefit of ResCap's creditors and preserved more than 3,800 U.S. jobs.

Specifically, the mortgage servicing and origination platform assets were sold to Ocwen and Walter Investment for $3 billion, and the whole loan portfolio was sold to Berkshire for $1.5 billion.

"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 in the release.

Residential Capital, a New York-based mortgage originator and servicer, filed for bankruptcy on May 14, 2012. Its case number is 12-12020.

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