A unit tied to Warren Buffet’s Berkshire Hathaway Inc. is jumping into mortgage banking — potentially becoming the third biggest U.S. commercial mortgage servicer.
Bankrupt Capmark Financial Group Inc. announced today that it received bankruptcy court approval to complete the sale of its North American servicing and mortgage banking businesses to Berkadia Commercial Mortgage LLC.
A “put agreement” originally announced in September provided for the potential acquisition. Capmark filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code last month in U.S. Bankruptcy Court for the District of Delaware.
Berkadia, a venture recently launched by Berkshire Hathaway Inc. and Leucadia National Corp., is paying $515 million for Capmark’s operations.
Capmark subsidiary Capmark Finance Inc. was ranked as the third biggest commercial mortgage servicer in the second quarter by the Mortgage Bankers Association. As of June 30, it serviced 32,357 loans for $248.7 billion.
