ResMAE $500 million loan purchase facility approved

By Caroline Salls

Pittsburgh, March 22 - ResMAE Mortgage Corp. obtained final court approval of a $500 million mortgage loan purchase facility from Lehman Brothers Inc., according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The facility will allow Lehman to buy eligible mortgage loans from ResMAE from the loan closing date through completion of the ResMAE acquisition by RMC Asset Acquisition LLC.

The purchase price for newly originated loans will be 100% of the unpaid principal balance plus a yield spread premium and cost of origination not to exceed 102.5% of the unpaid principal.

For loans previously originated by ResMAE, the purchase price will be 100% of the court-approved price of the loans.

ResMAE will pay a $1 million commitment fee.

ResMAE, a mortgage lender based in Brea, Calif., filed for bankruptcy on Jan. 12. Its Chapter 11 case number is 07-10177.

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