ResCap Borrowers Take $1.6B Haircut In Mortgage Settlement

Law360, Los Angeles (August 23, 2013, 9:23 PM ET) -- A putative class of borrowers who took out mortgage loans from Residential Capital LLC agreed to a $1.6 billion haircut on their claims the lender had breached federal laws against high-cost loans, in a settlement given an initial nod by a New York bankruptcy judge Friday.

U.S. Bankruptcy Judge Martin Glenn on Friday granted preliminary approval to a $300 million settlement that ends the putative class action with a loss of nearly 85 cents on the dollar from the $1.9 billion the class of mortgage borrowers...
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