Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
706,554-12501
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.91%-0.01

ResMAE Files Chapter 11, Credit Suisse to Provide Lifeline

ResMAE Mortgage Corporation announced early Tuesday that it has signed an asset purchase agreement with Credit Suisse, in which Credit Suisse will acquire certain assets of ResMAE. Concurrent with the signing, ResMAE said it had also voluntarily filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The asset purchase agreement is subject to bankruptcy court approval as well as additional conditions to closing, the company said. No additional details regarding the troubled subprime lender’s deal with Credit Suisse was provided, although sources have told Housing Wire that Credit Suisse funded the subprime wholesaler’s warehouse line. “This agreement brings together ResMAE’s core competence in originating subprime mortgages with Credit Suisse’s global expertise in risk management, securitization and distribution,â€? said Ed Resendez, president and CEO of ResMAE Mortgage Corporation. Wall Street banks have been hit hard by poor collateral performance in the subprime sector recently, with Merrill Lynch recently conducting margin calls among the third-party B&C mortgage operations it has funding agreements with. The ResMAE deal seems to signal a different strategy at Credit Suisse, who appears to be working with its troubled lenders to ensure protection of its capital as much as possible.

“Credit Suisse is looking to protect its investments,” said one industry source, who asked to remain anonymous. “They didn’t want to be caught with their pants down, like Merrill at MLN, where the bankruptcy stay would prevent them from recovering at least some value.” Resendez said that ResMAE will continue to operate normally during the reorganization period. “To ensure that our customer and vendor relationships remain intact during the sale process, Credit Suisse is providing us with post-petition warehouse financing and operating funds that we anticipate will enable us to operate in a normal manner during the reorganization,” he said. “Our offices shall remain open as usual with loan originations and the associated transactions proceeding in the ordinary course of business. Our customers should see no disruption in our service and delivery commitments. We currently expect that suppliers will be paid for all post-petition goods and services.â€?

Don’t subscribe? Be sure to sign up today to get our free email updates delivered direct to your inbox!

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please