Subprime Lending

ResMAE Files Chapter 11, Credit Suisse to Provide Lifeline 

ResMAE Mortgage Corporation announced early Tuesday that it has signed an asset purchase agreement with Credit Suisse, in which Credit Suisse will acquire certain assets of ResMAE. Concurrent with the signing, ResMAE said it had also voluntarily filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The asset purchase agreement is subject to bankruptcy court approval as well as additional conditions to closing, the company said. No additional details regarding the troubled subprime lender’s deal with Credit Suisse was provided, although sources have told Housing Wire that Credit Suisse funded the subprime wholesaler’s warehouse line.