Berkshire Hathaway to Open ResCap Loan Bids
Berkshire Hathaway Inc. is the opening bidder today for a portfolio of Residential Capital LLC’s whole loans, a day after Res-Cap auctioned its mortgage servicing business to Ocwen Financial Corp. for $3 billion.
Berkshire will start tomorrow’s auction for the loan portfolio, competing against a consortium of financial investors, according to a person familiar with the matter.
Yesterday Ocwen beat Nationstar Mortgage Holdings Inc. in an auction that would create at least the fifth-largest U.S. mortgage servicer. It’s a business that profits from making sales beyond servicing, said Rick Sharga, an executive vice president at Carrington Mortgage Holdings, in a phone interview.