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...The successful auction follows the sale of ResCap’s mortgage servicing business to Ocwen Financial for $3bn on Wednesday after it won a bidding war with Nationstar Mortgage....
...Ocwen Financial and NationStar Mortgage will compete for the chance to buy the business at the Sheraton Hotel in New York. They have both valued the ResCap rights at around $2.5bn....
...Mr Buffett’s company....
...However, Mr Buffett’s intervention was only the most recent foray by a private investor into a previously little-known corner of the US housing market....
...The Berkshire bids are the latest twist in a battle between Ally, which was the financing arm of GM and went by the name GMAC before the $17.1bn government bailout, and Mr Buffett’s company....
...ResCap will add $374bn to the almost $200bn of mortgage assets already serviced by Nationstar, the largest non-bank mortage loan servicer in the US....
...Fortress employed Mr Edwards as a consultant from late 2005 to 2006 and at one time he had $16m invested across various Fortress businesses. Mr Edwards no longer has a stake in Nationstar....
...The subprime mortgage lender, now called Nationstar Mortgage, offers loans with higher interest rates and fees than traditional mortgages to people with patchy credit....
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