Judge Questions ResCap Bid To Stop Foreclosure Reviews
By Maria Chutchian
Law360, New York (March 21, 2013, 4:05 PM ET) -- A New York bankruptcy judge on Thursday put off ruling on Residential Capital LLC’s request to stop performing foreclosure reviews that are costing it $300,000 a day, ordering the fallen mortgage servicer and its opponent Ally Financial Inc. to rethink their arguments.
ResCap had petitioned the judge to find that it is no longer responsible for conducting foreclosure reviews as required under a consent order with the Federal Reserve. It also asked for a ruling that its obligation to conduct the reviews be converted to a general...