Capmark Ducks $2M Claim Over Mortgage Servicing

Law360, New York (July 13, 2011, 6:56 PM EDT) -- The bankruptcy judge overseeing Capmark Financial Group Inc.’s reorganization in Delaware on Wednesday rejected National Life Insurance Co.’s bid to recover more than $2 million relating to mortgage loans the debtor serviced.

U.S. Bankruptcy Judge Christopher Sontchi denied National’s attempt to modify the terms of Capmark’s 2009 sale of its mortgage servicing business to Berkadia Commercial Mortgage LLC or otherwise ensure that National is compensated for $2 million in delinquent real estate taxes Capmark allegedly failed to pay.

Without explaining the decision, the court refused to...
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