Subprime lender rises from the ashes

Subprime lender ResMAE Mortgage Corp. has emerged from Chapter 11 bankruptcy protection as a wholly owned subsidiary of RMC Mortgage Holdings.

ResMAE, which filed for bankruptcy protection in February, announced March 6 that the company had reached an agreement on the terms of a sale to the company to an affiliate of Citadel Investment Group LLC. Under the terms of agreement, the affiliate -- now identified as RMC -- was to pay $22 million to acquire certain ResMAE assets and liabilities.

The agreement with Citadel replaced an agreement signed in February with Credit Suisse.

The U.S. Bankruptcy Court for the District of Delaware confirmed ResMAE's plan of reorganization on June 5, 2007, and the company said Friday that it had emerged from Chapter 11 "with renewed strength and commitment to delivering best-in-class products and services in the nonconforming mortgage marketplace."

ResMAE says it's refocused its sales efforts to create stronger broker relationships and increase production; "enhanced the origination process" to provide for greater efficiency and quality service; and strengthened the credit review process to increase overall loan quality.

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.