Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Fortress Investment Group LLC    FIG

SummaryQuotesChartsNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

ResCap Chief Expects Competing Bids for Mortgage Assets

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/07/2012 | 09:57pm CET

--Ocwen CFO says firm is interested in bidding on ResCap assets

--Nationstar is the stalking horse bidder for servicing rights to $374 billion of mortgages

--Apollo, BlackRock, Blackstone and TPG would be logical bidders - source

(Updates with more details about ResCap assets in paragraph 10 and about mortgage lawsuits in paragraph 26.)

 
   By Andrew R. Johnson 
 

Nationstar Mortgage Holdings Inc. (NSM) will likely face competition in its pursuit of Residential Capital LLC's mortgage assets, the bankrupt lender's chief executive said Thursday.

Also, ResCap isn't concerned that creditor demands for an independent examiner to review transactions between the lender and its parent, Ally Financial Inc., would yield any "surprises," Thomas Marano, chairman and chief executive officer of ResCap, said in an interview.

ResCap, once one of the country's largest subprime mortgage lenders, proposed selling servicing rights to $374 billion of mortgages and other assets to Nationstar last month in a $2.4 billion deal. The plan was included as part of ResCap's Chapter 11 bankruptcy filing on May 14.

Nationstar's "stalking horse" bid is subject to other offers, which could come from competing mortgage servicer Ocwen Financial Corp. (>> Ocwen Financial Corporation) and several private-equity firms, Marano said.

Marano said he has heard Ocwen plans to file a competing bid, and "some of the private equity funds are looking to come in as well."

"My gut is you're going to see some of the typical" names, Marano said, declining to name specific private-equity firms that he expects to make bids.

Apollo Global Management LLC (>> Apollo Global Management LLC), BlackRock Inc. (>> BlackRock, Inc.), Blackstone Group LP (>> The Blackstone Group L.P.) and TPG would be logical bidders for ResCap assets, a person familiar with the matter said.

Ocwen is interested in bidding on ResCap's assets, John Britti, chief financial officer of the mortgage servicer, wrote in an email Thursday.

"Based on the pricing we have seen in the bankruptcy filing, we see value," Britti wrote. "We also believe that creditors and regulators are likely to prefer seeing the portfolio broken into parts."

The assets Nationstar is bidding on include servicing rights to $201 billion of mortgages and subservicing rights to $173 billion of mortgages.

Ocwen, like Nationstar, has been bulking up its operations as traditional lenders exit the mortgage-servicing business due to upcoming changes in capital requirements and increased regulatory scrutiny.

Spokesmen for Apollo and Blackstone declined to comment. Representatives for BlackRock and TPG didn't immediately respond to requests for comment.

ResCap is proposing a Sept. 14 deadline for rival bids. If it receives any, an auction would be set for Sept. 25 at the Manhattan office of Morrison & Foerster LLP, ResCap's bankruptcy counsel. ResCap hopes to have a sale hearing by the end of October.

The company will ask a judge to approve its auction procedures at a June 18 hearing.

Despite potential competition, Nationstar is "uniquely qualified to do this deal," Marano said. "I do feel they are the best counterparty for the" government-sponsored enterprises.

Marano has led ResCap since 2008 and was previously a managing director for Cerberus Capital Management LP, which owns an 8.67% stake in Ally. He also was a senior managing director and head of mortgage and asset-backed securities at the former Bear Stearns & Co. Inc.

Nationstar, which is majority owned by Fortress Investment Group LLC (>> Fortress Investment Group LLC), is in the process of integrating a $63 billion servicing portfolio it is acquiring from Aurora Bank, which was part of Lehman Brothers Holdings Inc. On Monday, Nationstar said it was acquiring the servicing rights to $10.4 billion of mortgages from Bank of America Corp. (>> Bank of America Corp).

A representative for Nationstar didn't immediately respond to requests for comment Thursday.

Creditors are seeking to investigate how the proposed deal was structured as well as transactions ResCap and Ally conducted in prior years.

Warren Buffett's Berkshire Hathaway Inc. (BRKA, BRKB), one of ResCap's largest creditors, on Monday filed a motion to appoint an independent examiner to review the companies' relationships before and after the bankruptcy. Among the transactions Berkshire wants examined is Ally's acquisition of ResCap's ownership stake in the holding company for Ally Bank in 2009.

"This and other transactions may give rise to various potential claims that Ally and affiliates have harvested assets from ResCap and seek a quick and easy divorce through bankruptcy," Berkshire said in its motion, which will be heard on June 18 before Judge Martin Glenn.

If the judge approves the appointment of an examiner, "we'll be fine with it," Marano said.

"I am confident that this company was operated in a separate and distinct manner," Marano said. "We got fairness opinions on all the meaningful transactions, and I don't think there's going to be anything ... problematic."

A spokeswoman for ResCap declined to say whether it plans to oppose Berkshire's motion.

Ally is also seeking a release from third-party claims over soured mortgage investments as part of ResCap's bankruptcy in an effort to sever itself from costly litigation that has prevented it from paying back a government bailout.

Mortgage insurers and investors have filed 27 lawsuits against affiliates of ResCap that are not part of the bankruptcy, including Ally Financial, Ally Bank and Ally Securities, ResCap said in a court filing last month. ResCap is seeking to delay suits against those parties, which it said would preserve the value of its estate.

Ally, the former in-house financing arm for General Motors Co. (GM), still owes $12 billion from a bailout it received during the financial crisis that topped $17 billion. It remains 74%-owned by the U.S. government.

-Joseph Checkler contributed to this article

Write to Andrew R. Johnson at andrew.r.johnson@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on FORTRESS INVESTMENT GROUP
12/01 FORTRESS INVESTMENT GROUP LLC (NYSE : FIG) Files An 8-K Regulation FD Disclosure
12/01 FORTRESS INVESTMENT GROUP LLC : Regulation FD Disclosure (form 8-K)
12/01 FORTRESS INVESTMENT LLC : Research Reports Initiation on Asset Management Stocks..
11/11 FORTRESS INVESTMENT LLC : Announces Acquisition of Limited Partner Interest in R..
11/09 FORTRESS INVESTMENT GROUP LLC : ex-dividend day
11/03 FORTRESS INVESTMENT LLC : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL COND..
11/03 FORTRESS INVESTMENT LLC : 11.03.2016 Fortress Reports Third Quarter 2016 Results..
11/03 FORTRESS INVESTMENT GROUP LLC : Results of Operations and Financial Condition, F..
11/03 FORTRESS INVESTMENT LLC : Reports Third Quarter 2016 Results and Announces Divid..
10/24 FORTRESS INVESTMENT LLC : Drawbridge Special Opportunities Funds Named “Be..
More news
Sector news : Investment Management & Fund Operators - NEC
12/02DJMorgan Stanley Toughens Pay Hurdles for Brokers
12/02 Trump creates business advisory council stacked with CEOs
12/01 CREDIT SUISSE : Swiss spin-off faces same capital rules as group
11/29DJAMP : Makes Changes to Senior Leadership
11/28 Britain's JD Sports buys Go Outdoors for 112 million pounds
More sector news : Investment Management & Fund Operators - NEC
News from SeekingAlpha
11/29 27 Well-Cushioned Safe Dividend Financial Dogs For December
11/29 Financial Sector Analysts See BGC Partners As Top Dog For November Gains
11/11 NEW SENIOR INVESTMENT GROUP : Is The Reward Worth The Risk?
11/07 MY 71 STOCK OCTOBER 2016 PORTFOLIO U : 71 Stocks, Buying Altria, AbbVie And AT&T..
11/03 Fortress Investment Group's (FIG) CEO Randal Nardone on Q3 2016 Results - Ear..
Advertisement
Financials ($)
Sales 2016 989 M
EBIT 2016 362 M
Net income 2016 -
Debt 2016 -
Yield 2016 12,1%
P/E ratio 2016 7,48
P/E ratio 2017 7,60
Capi. / Sales 2016 1,99x
Capi. / Sales 2017 1,93x
Capitalization 1 969 M
More Financials
Chart FORTRESS INVESTMENT GROUP
Duration : Period :
Fortress Investment Group  Technical Analysis Chart | FIG | US34958B1061 | 4-Traders
Full-screen chart
Technical analysis trends FORTRESS INVESTME...
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 5
Average target price 6,19 $
Spread / Average Target 21%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Randal Alan Nardone Chief Executive Officer & Non-Independent Director
Wesley Robert Edens Co-Chairman
Pete L. Briger Co-Chairman
Daniel Neal Bass Chief Financial Officer
Douglas Lee Jacobs Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
FORTRESS INVESTMENT GR..0.20%1 969
UBS GROUP AG0.00%60 621
BLACKROCK, INC.9.06%60 186
GOLDMAN SACHS BDC INC21.84%55 974
BANK OF NEW YORK MELLO..15.04%50 382
STATE STREET CORP18.75%30 257
More Results