Bankruptcy Judge Mary F. Walrath on Friday approved a multibillion-dollar business wind-down for Reverse Mortgage Investment Trust (RMIT), one day after a delay allowed the company to provide additional information on funding for its liquidation, National Mortgage Professional reported. On Thursday, Judge Walrath halted RMIT's scheduled confirmation hearing after raising concerns about the feasibility of the company's plans to meet top-priority case administration claims without further reorganization. By Friday morning, however, RMIT had filed a revised order, plan and declaration that addressed the judge's concerns. The plan includes proposals for financing a case with $1.23 billion in long-term funded debt and a mortgage-servicing portfolio that totaled over $25.5 billion when the company filed its chapter 11 petition. The revised declaration includes a more comprehensive description of the expected estate funding that would be available throughout the wind-down and explains how administrative claims are to be paid, according to Patrick Venter of Sidley Austin LLP, an attorney representing RMIT. RMIT filed for bankruptcy at the end of November, citing rising interest rates and a downturn in new loans for its liquidity crisis. RMIT is one of the largest originators of reverse mortgages in the U.S., with the majority of its reverse mortgage portfolio insured by the Federal Housing Administration (FHA) and pooled into mortgage-backed securities guaranteed by the Government National Mortgage Association (Ginnie Mae).
