Judge approves sale of Residential Capital assets

Wed Nov 21, 2012 9:21am EST

Nov 21 (Reuters) - A U.S. bankruptcy court judge on Wednesday approved the sale of Residential Capital LLC's mortgage business to Ocwen Financial Corp and Walter Investment Management Corp, which agreed to pay $3 billion in an auction last month.

ResCap, the mortgage subsidiary of auto lender Ally Financial, filed for bankruptcy in May in a bid to protect its parent from mortgage liabilities that threatened to swamp the company. Ally is 74 percent-owned by the U.S. government after a series of bailouts.

U.S. Judge Martin Glenn also approved the sale of a ResCap loan portfolio to Warren Buffett's Berkshire Hathaway Inc , which agreed to pay $1.5 billion last month for a package of 50,000 loans.

ResCap said the sale is expected to close in the first quarter.