FHFA Can Pursue MBS Claims Against ResCap Affiliates: Judge

Law360, New York (July 18, 2012, 10:49 PM EDT) -- A New York judge on Tuesday allowed the Federal Housing Finance Agency to move forward with mortgage-backed securities claims against Residential Capital LLC affiliates by denying the bankrupt mortgage lender's request to halt any prosecution or extend its automatic stay.

ResCap, Ally Financial Inc.'s bankrupt mortgage unit, asked the court to either enjoin the FHFA from bringing suit against 10 of its nondebtor corporate affiliates — including Ally Financial, Ally Securities and GMAC Mortgage — or else include them the automatic stay protection afforded by its...
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