Fannie Won't Block $3B Rescap Sale After $298M Settlement

Law360, New York (January 24, 2013, 12:35 PM EST) -- Fannie Mae agreed Wednesday to withdraw its objection to bankrupt Residential Capital LLC’s proposed $3 billion sale of its mortgage servicing and origination platform to Ocwen Financial Corp., after the parties struck a $298 million settlement.

Fannie Mae, which is the largest owner of ResCap loans, will accept the settlement as compensation for losses allegedly caused by the May 14 bankruptcy filing in New York federal court. Under the agreement, Fannie Mae will receive a so-called cure payment of $265 million, as well as $32.6 million...
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