Mortgage Borrowers Get Elevated Status In Ditech Ch. 11

By Rick Archer (May 3, 2019, 5:46 PM EDT) -- The U.S. Trustee's Office has named an official consumer creditors committee in the Ditech Holding Corp. Chapter 11 case at the same time a New York bankruptcy judge gave those creditors more time to file their claims against the mortgage provider.

Trustee William Harrington filed notice Thursday that he had created a five-member committee to represent consumer mortgage holders with claims against Ditech, the same day U.S. Bankruptcy Judge James Garrity Jr. extended the now-expired deadline for those consumers to file proofs of claim against the company to June 3.

Last month, a trio of Chicago homeowners who said they were...

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