ResMAE agrees to continue to service Lehman-owned mortgage loans

By Caroline Salls

Pittsburgh, May 7 - ResMAE Mortgage Corp. requested court approval to enter into a mortgage loan subservicing agreement with Lehman Brothers Holdings Inc. and Aurora Loan Services LLC, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, under ResMAE's current loan purchase agreement with Lehman, the latter owns the rights to service the mortgage loans it buys from ResMAE, and, when the agreement expires on May 28, Lehman has the right to appoint a new servicer.

As a result, Lehman has decided to appoint Aurora as the new servicer.

In addition, Aurora plans to appoint ResMAE as the subservicer for a portion of Lehman's loans.

ResMAE will receive a monthly servicing fee of one-twelfth of the product of the 10 basis points subservicing fee rate and the outstanding principal balance of the loan being serviced.

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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