Nationstar, in a new Securities and Exchange Commission (SEC) filing, says it is increasing by $125 million its bid on mortgage-related assets that it hopes to buy from the bankrupt Residential Capital Corp.
In mid-May, Nationstar agreed to purchase for almost $4 billion a large chunk of ResCap from Ally Financial via a prepackaged bankruptcy arrangement. ResCap services roughly $370 billion of home mortgages, according to National Mortgage News and the Quarterly Data Report.
Nationstar is considered the “stalking horse” bid on the bankrupt company, but Berkshire Hathaway and Ocwen Financial also have shown interest in ResCap. (Berkshire actually submitted a bid but was rejected.)
Texas-based Nationstar also revealed that it will reduce by $48 million the cash “break-up” fee that Ally would have to pay the specialty servicer under “certain circumstances.” Nationstar also agreed to waive a $10 million expense reimbursement clause, the SEC filing shows.
Meanwhile, in another new SEC filing, Nationstar notes that a $150 million credit facility it secured from Wells Fargo has been reduced to $100 million.
The loan was made in connection with Nationstar’s purchase of $57 billion of servicing rights from the troubled Aurora Loan Services of Colorado.
