New Residential Investment Corp. secured approval from the U.S. Bankruptcy Court for the Southern District of New York to proceed with its asset purchase agreement with Ditech Holding Corp., which filed for bankruptcy in February.
New Residential in June filed a stalking-horse bid to acquire some of the mortgage loan originator's assets. Under the agreement, the company will purchase Ditech's forward Fannie Mae, Ginnie Mae and nonagency mortgage servicing rights; the servicer advance receivables related to the MSRs; and other core net assets of the forward origination and servicing businesses.
The company also agreed to assume certain office spaces of Ditech and to offer jobs to some of its employees. However, it will not purchase stock or assets of Ditech's reverse mortgage business or of any other Ditech subsidiary. Mortgage Assets Management LLC entered into an agreement to buy the stock and assets of Reverse Mortgage Solutions Inc. when it made its own stalking-horse bid.
The deal is expected to close in the fourth quarter.
