Fannie Mae will allow the bankrupt Residential Capital to transfer its servicing contract to a subsidiary of Walter Investment Management Corp. following ResCaps agreement to pay $297.6 million to the GSE, under the terms of a settlement announced last week. ResCap will sell $50.4 billion in Fannie mortgage servicing rights to Walter as part of a combined $3.0 billion purchase by Walter and Ocwen Financial for $374.0 billion in ResCap MSRs along with ResCaps origination and capital markets platform. Ocwen and Walter teamed to outbid Nationstar Mortgage Holdings at a bankruptcy auction for the servicing portfolio and platform of ResCap, the mortgage unit of Ally Financial Inc. Concerned about the ability of the buyers to perform under the original contract and claiming that ResCap owed at least $415.3 million, Fannie had objected to the sale initially. The GSE also raised concerns about Walters ability to complete servicing duties required on the MSRs.