This is a very interesting piece of news. BH owns some of the debt which is expected to recover less than par. Since the creditor class that receives partial payment is the group which has most leverage in the bankruptcy outcome, BH is probably in the driver's seat.
BH doesn't necessarily want to play in the MSR business, but rather they may see this as a way of improving their recovery by reselling the MSR's to NSM at a later date. NSM may have to throw BH a pretty big bone to get them out of the picture.
I agree and disagree. It isn't good for NCT in that NCT/FIG/NSM will probably be bid up and have to pay more than their stalking horse bid. I disagree that what Buffett wants he gets. NCT/FIG/NSM end up with ResCap, the real question is what is the yield going to be given the price they will have to end up bidding.