Judge approves sale of Residential Capital assets

Wed Nov 21, 2012 9:24am EST

(Reuters) - A U.S. bankruptcy court judge on Wednesday approved the sale of Residential Capital LLC's mortgage business to Ocwen Financial Corp (OCN.N) and Walter Investment Management Corp (WAC.A), 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 (BRKa.N), 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.

(Reporting By Rick Rothacker in Charlotte, N.C., and Jochelle Mendonca; Editing by Gerald E. McCormick)