At one point, before Canadian regulators quietly mulled the transaction for months amid data security concerns, the merger had all U.S. state and federal approvals in place but some have expired.
Yet, since the sweep of U.S. approvals, some things have changed: Fannie Mae and Freddie Mac and the New York DFS are now overseen by entirely different chiefs. Federal Housing Finance Agency Director, Mark Calabria was sworn in this past April. Fannie and Freddie initially approved Oceanwide’s control of Genworth Mortgage Insurance Corp. in 2018 when Obama era FHFA head, Mel Watt, was the director. And in New York, state DFS Superintendent, Linda Lacewell took on her role — at first in an acting capacity — in February, a month after then-insurance commissioner Maria Vullo had approved the Genworth-Oceanwide deal.
China Oceanwide explained the litigation and provided updates involving the project in Part 4 of its Virginia SCC Dec. 20 insurance bureau regulatory filing.
A subcontractor sued the Plaza project and the general contractor in Los Angeles County Superior Court in January 2019 with a construction lien of $52.9 million. The registered construction lien is now $60.3 million after a change of appeal, Oceanwide wrote. Arbitration had been rejected by the court, it said. Oceanwide has since appealed to the California Courts of Appeal in order to shake the lien and settle.
The company “is ready to actively defend, continuing to register the cancellation of the lien security and remove all legal rights from the property right of the Oceanwide Plaza project. At the same time, it also seeks to negotiate and settle disputes,” it wrote in the filing.