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Lehman seeks approval of $43.42 million Ginnie Mae loan portfolio sale
By Caroline Salls
Pittsburgh, May 25 - Lehman Brothers Holdings, Inc. requested court approval to sell two portfolios of Government National Mortgage Association (Ginnie Mae) reverse mortgage loans to MetLife Home Loans for an estimated $43.42 million, according to a May 24 filing with the U.S. Bankruptcy Court for the Southern District of New York.
Lehman said it acquired fixed-rate and floating-rate reverse home equity conversion mortgage loans from indirect subsidiary Aurora Bank FSB that Aurora had previously acquired from MetLife's predecessors in interest.
After that, Lehman sold participation interests in the loans, which were securitized under a Ginnie Mae program.
Lehman said it is obligated to fund additional draws under the reverse mortgages and repurchase or satisfy the loan participation interests.
Under the purchase and sale agreement, Lehman will sell the unsecuritized balances of the loans currently in the securitizations, as well as some loans for which the participation interest has been repurchased by Lehman and loans for which the participation interest is repurchased before the sale is completed.
According to the motion, the purchase price is based on a formula.
Specifically, MetLife will pay the sum of 81.01% of the sum of the total unsecuritized balances of HMBS loans as of the close of business on the closing date, plus the total outstanding balance of Lehman loans as of the close of business on the closing date, plus the total outstanding balance of additional Lehman loans as of the close of business on the closing date, plus the product of $200.00 times the number of additional Lehman loans.
A hearing is scheduled for June 15.
New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008. Its Chapter 11 case number is 08-13555.
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