Judge OKs Bankrupt Mortgage Lenders' Settlement

Law360, New York (July 24, 2008, 12:00 AM EDT) -- A bankruptcy judge has approved settlement agreements over mortgage licenses between subprime lender Mortgage Lenders Network USA Inc. and banking authorities in five northeastern states.

In an order signed July 22 in the U.S. Bankruptcy Court for the District of Delaware, Judge Peter J. Walsh approved Mortgage Lenders' individual agreements to surrender its mortgage licenses in Maine, Pennsylvania, Rhode Island, Massachusetts and Vermont and pay Rhode Island a $42,714 penalty in order to avoid a costly legal battle over the licenses.

The court's decision approves a...
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