Bankruptcy Court OKs $298M ResCap-Fannie Mae Settlement

Law360, New York (January 31, 2013, 6:45 PM EST) -- A New York bankruptcy court on Thursday signed off on Residential Capital LLC's $298 million settlement with Fannie Mae for losses allegedly caused by a May bankruptcy filing, allowing ResCap to close a portion of the $3 billion sale of its mortgage servicing and origination platform.

The court accepted the stipulation and order, in which ResCap agreed to pay Fannie Mae $298 million as compensation for losses allegedly caused by ResCap's May 14 bankruptcy filing in New York federal court. The settlement includes a so-called cure payment...
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