As we have discussed in January 2012 when it was but a rumor (see here), GMAC is filing a bankruptcy under Residential Capital. Dan Edstrom writes:
By Daniel Edstrom
DTC Systems, Inc.
According to Residential Funding Corporation, GMAC was one of the largest entities securitizing loans in 2000. This bankruptcy probably has an impact on nearly every single GMAC based loan or loan that was securitized by GMAC. Many of the GMAC deals pledged the loans to the trusts but never actually perfected the transfer. This could mean that your “lender”, “creditor” or “owner” of these loans is one of the many related entities of Residential Capital (RESCAP) – which may be a problem because they have probably been paid in full. Many of these entities had a security interest in the money advanced to fund the loans, even though they were not the named lender. Many of these entities were required and obligated to make payments on the borrowers loans – and they did in fact make payments. Many of these entities had guarantee agreements with other parties (such as servicers) to reimburse them for payments of principal and interest made on borrowers loans.
Here is the list of related entities RESCAP is attempting to consolidate into one bankruptcy:
- ditech, LLC
- DOA Holding Properties, LLC
- DOA Properties IX (Lots-Other), LLC
- EPRE LLC Equity Investment I, LLC
- ETS of Virginia, Inc.
- ETS of Washington, Inc.
- Executive Trustee Services LLC
- GMAC – RFC Holding Company, LLC
- GMAC Model Home Finance I, LLC
- GMAC Mortgage USA Corporation
- GMAC Mortgage, LLC
- GMAC Residential Holding Company, LLC
- GMAC RH Settlement Service, LLC
- GMACM Borrower LLC
- GMACM REO LLC
- GMACR Mortgage Products, LLC
- HFN REO SUB II, LLC
- Home Connects Lending Services, LLC
- Homecomings Financial Real Estate Holdings, LLC
- Homecomings Financial, LLC
- Ladue Associates, Inc.
- Passive Asset Transactions, LLC
- PATI A, LLC PATI B, LLC
- PATI Real Estate Holdings, LLC
- RAHI A, LLC
- RAHI B, LLC
- RAHI Real Estate Holdings, LLC
- RCSFJV2004, LLC
- Residential Accredit Loans, Inc.
- Residential Asset Mortgage Products, Inc.
- Residential Asset Securities Corporation
- Residential Capital, LLC
- Residential Consumer Services of Alabama, LLC
- Residential Consumer Services of Ohio, LLC
- Residential Consumer Services of Texas, LLC
- Residential Consumer Services, LLC
- Residential Funding Company, LLC
- Residential Funding Mortgage Exchange, LLC
- Residential Funding Mortgage Securities I, Inc.
- Residential Funding Mortgage Securities II, Inc.
- Residential Funding Real Estate Holdings, LLC
- Residential Mortgage Real Estate Holdings, LLC
- RFC – GSAP Servicer Advance, LLC
- RFC Asset Holdings II, LLC
- RFC Asset Management, LLC RFC
- Borrower LLC
- RFC Construction Funding, LLC
- RFC REO LLC
- RFC SFJV-2002, LLC
(Beth again:)Here’s another interesting snippet from Mortgage News Daily, regarding Ally Bank (dba GMAC Bank) writing to its customers in warehouse lending and banking, saying that it was NOT part of the bankruptcy:
The GMAC/ResCap bankruptcy has long been anticipated – heck, even this commentary has been mentioning it for months. Clients received this note: “GMAC Residential Capital, LLC (ResCap) announced they have filed for bankruptcy protection. Ally Bank (dba GMAC Bank) is a separate legal entity from ResCap and operates independently of ResCap. Business Lending is an operating division of Ally Bank consisting of Warehouse Banking, Correspondent Lending and Wholesale Lending. The decisions made by ResCap do not impact ongoing operations of Ally Bank’s Business Lending Division. We would like to reassure all of our clients that your business relationship with Ally Bank will not be impacted by these changes. Ally remains an active participant in the Correspondent and Wholesale lending channels, and will continue to honor its commitments and purchase and fund those loans. Ally Bank continues to maintain lending relationships and continues to provide warehouse financing to those customers. In addition, Ally Bank is a direct seller to FNMA and FHLMC and maintains a servicing portfolio of both agency and non-agency loans.”