ResCap Bankruptcy Judge Delays Mortgage Settlement Ruling

Law360, New York (August 22, 2013, 6:07 PM EDT) -- The judge overseeing Residential Capital LLC’s bankruptcy on Thursday said he would not make a ruling on a settlement to end a mortgage loan borrower class action because of potential interference it could have with nonsettling defendants in a related multidistrict litigation in Pennsylvania.

U.S. Bankruptcy Judge Martin Glenn said he would not rule on ResCap’s motion for preliminary approval of the deal, which would end a putative class action brought by mortgage loan borrowers and reduce their $1.9 billion in claims to a $300 million...
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