July 11, 2014 6:52 AM ET

Thrifts and Mortgage Finance

Company Overview of Residential Capital, LLC

Company Overview

On December 17, 2013, Residential Capital, LLC went out of business as per its Chapter 11 liquidation filing under bankruptcy. Residential Capital, LLC, a real estate finance company, focuses on the residential real estate market in the United States. It offers services to U.S. residential finance industry. The company provides origination and servicing of mortgage loans, and securitization on the secondary market. The company through its subsidiary, GMAC Mortgage LLC, originates and services residential mortgages under the GMAC Mortgage and ditech brand names. It also provides capital to other originators of mortgage loans. The company was incorporated in 2004 and is headquartered in Minnea...

One Meridian Crossings

Minneapolis, MN 55423

United States

Founded in 2004

Phone:

952-857-8700

Fax:

952-918-3000

Key Executives for Residential Capital, LLC

Residential Capital, LLC does not have any Key Executives recorded.

Residential Capital, LLC Key Developments

Residential Capital, LLC Announces Resignation of Tom Marano as CEO

Residential Capital, LLC announced the resignation of Thomas Marano as CEO of the company. Marano joined the company in August 2008. From 2008 to 2011, Marano implemented a significant restructuring of ResCap's servicing and origination business, which required the disposition of various non-strategic foreign and domestic business lines and portfolios. During his tenure, ResCap was a leader in facilitating mortgage modifications for troubled borrowers. Nearly 1 million homeowners received mortgage modifications, and ResCap originated approximately $200 billion in new residential mortgage loans.

Residential Capital LLC Reaches an Agreement with Fannie Mae

Residential Capital LLC has reached an agreement with Fannie Mae that would give Fannie Mae a $297.6 million payment. Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan is set to consider approval of the stipulation on January 30. ResCap and Fannie Mae struck the deal after the latter objected to the sale of certain ResCap assets, asserting it was owed at least $415.3 million to cure payment defaults. Warren Buffett's Berkshire Hathaway Inc. purchased a loan portfolio for $1.5 billion, while Ocwen Financial Corp. and Walter Investment Management Corp. will acquire ResCap's mortgage loan origination business for $3 billion. Glenn approved the sales on November 21, but his sale order for the loan origination business allows the subsequent resolution of objections to cure payments. ResCap still is working to close the deals. Under the agreement with Fannie Mae, filed January 23, when the sale of the loan origination business closed, Fannie Mae would receive $297.6 million to repay the amount outstanding on its early advance funding mechanism and to cure all the defaults on its agreements with ResCap. Fannie Mae was the largest owner of mortgage loans originated and serviced by the debtor. ResCap hopes to close the sale by February 1. If the sale did not close by February 28, the stipulation would be null and void. Residential Capital filed for bankruptcy on May 14 with the terms of a pre negotiated reorganization plan supported by holders of 37% of ResCap's junior secured notes. Those note holders agreed to a settlement that would reduce the estate's interest obligations by $350 million. The plan, which ResCap did not file, was to allow the debtor to wind down operations and implement a global settlement.

Nationstar Mortgage Reportedly Submits Bid For Residential Capital

People familiar with the matter said that Nationstar Mortgage Holdings Inc. submitted a $2.67 billion bid to acquire mortgage assets of Residential Capital, LLC (ResCap). Nationstar Mortgage's bid reportedly topped Ocwen Financial Corp.'s $2.65 billion bid for ResCap. According to a person familiar with the matter, Nationstar had earlier bid $2.64 billion for the potential acquisition. The auction started on October 23, 2012 and it might last multiple days. The companies are competing for ResCap's mortgage-servicing and origination platform including the rights to service 2.4 million mortgages that account for $374 billion in unpaid balances. The people said that only two bidders are left in the competition for acquiring the assets.

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