Subprime lender ResMAE Mortgage Corp., which made nearly $8 billion in loans in 2006, has filed for Chapter 11 bankruptcy protection and will sell its assets to Credit Suisse Group Inc. for $19 million.

Like other lenders that have run into financial difficulties in recent weeks, the Brea, Calif.-based company was hit by a rise in early defaults, which forced it to take back loans it had sold to investors, the Associated Press reported, citing court records.

Merrill Lynch & Co., the largest purchaser of ResMAE loans, in December demanded that the company buy back $308 million in loans, the Orange County Register reported, citing the same bankruptcy filing. ResMAE argues the buyback period had expired on many of the loans. 

ResMAE employs 1,037 and hopes the sale to Credit Suisse — which must be approved by the bankruptcy court — will preserve more than 800 jobs.

ResMAE President and Chief Executive Officer Ed Resendez said in a statement that the company’s offices will remain open and that ResMAE will continue originating loans.

“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,” Resendez 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.”

ResMae is among at least 20 mortgage lenders who have closed or been sold in recent weeks, Bloomberg reports.

In acquiring ResMAE, Credit Suisse is following in the footsteps of competing banks who securitize and sell mortgage loans and who have bought mortgage originators to boost profits. Morgan Stanley, Merrill Lynch & Co., Barclays Plc and Deutsche Bank AG have all made similar acquisitions.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription