Berkshire Hathaway won an auction for a portfolio of Residential Capital LLC’s loans with a $1.5 billion bid, according to two people familiar with the matter.
The competing bidder was a group that included Credit Suisse Group, said the people, who declined to be identified because they weren’t authorized to speak publicly. ResCap auctioned its mortgage-servicing business to Ocwen Financial on Oct. 24 for $3 billion. Ocwen beat Nationstar Mortgage Holdings in an auction that would create at least the fifth-largest US mortgage servicer.
Ally Financial, a Detroit auto lender majority owned by US taxpayers, allowed New York-based ResCap to file for bankruptcy in May to distance itself from the mortgage lenders’ losses and help repay its 2008 bailout following the housing crash and subsequent credit crisis.
Ally was previously owned by General Motors.