Nearly a dozen correspondent mortgage lenders have agreed to a settlement with a unit of bankrupt Residential Capital LLC.
ResCap had been a subsidiary of Ally Financial Inc. until 2012, when massive mortgage-related losses drove it into bankruptcy.
In all, 28
Ally entities including ditech.com, GMAC Mortgage LLC and Homecomings Financial LLC filed bankruptcy petitions.
The ResCap Liquidating Trust subsequently filed indemnity and breach of contract actions against correspondent lenders of Residential Funding Company LLC, which was also known as RFC.
On Thursday, the liquidating trust announced that it has
has entered into settlement agreements with 11 of the correspondent lenders since the end of the first quarter.
The defendants to settle are:
- DB Structured Products, Inc., on behalf of itself and as successor to MortgageIT Inc.;
- Gateway Bank F.S.B.;
- Circle Mortgage Corp.;
- Broadview Mortgage Corp.;
- Fremont Bank;
- The Mortgage Outlet Inc.;
- Mortgage Network Inc.;
- CMG Mortgage Inc.;
- First Equity Mortgage Bankers Inc.;
- Americash;
- and Wallick & Volk.
“The trust intends to continue to vigorously pursue other pending correspondent lender actions in order to maximize recoveries for unitholders,” ResCap Liquidating Trust Chairman Mitchell Sonkin said in the statement.
