Washington Mutual Sues Alliance For Loan Payments

Law360, New York (August 16, 2007, 12:00 AM EDT) -- Washington Mutual Inc. has filed an adversary case against Alliance Bancorp Inc., claiming that the bankrupt mortage lender has failed to turn over funds related to a loan servicing agreement between the two companies.

WAMU alleges that Alliance owes the company payments it collected on WAMU loans it had agreed to service, and has not released vital accounting information needed to track those loan payments. The company filed its case in the Bankruptcy Court for the District of Delaware on Tuesday.

“As a result, WAMU cannot...
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