Travelers Fights Mortgage Lenders' Deal With States

Law360, New York (December 4, 2007, 12:00 AM EST) -- The Travelers Companies Inc. has stepped up its opposition to deals Mortgage Lenders Network USA Inc. struck with four state banking departments that would allow the bankrupt mortgage provider to avoid possible million-dollar penalties for lending violations.

Travelers, which issued Mortgage Lenders certain surety bonds in the four states, on Monday contended that the insurer did not get any notice about the settlement even though it would be directly affected by it.

In the stipulation Mortgage Lenders submitted to the U.S. Bankruptcy Court in Delaware last...
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