Mortgage Lenders Sued By Financial Backers For $9M

Law360 (April 20, 2007, 12:00 AM EDT) -- A finance company is suing Mortgage Lenders Network USA Inc. after unsecured creditors of the bankrupt subprime lender opposed a $9.1 million bill for foreclosure costs, according to court papers.

Residential Funding Company filed a complaint with the U.S. Bankruptcy Court in Delaware Thursday, asking for recovery of the money it advanced to Mortgage Lenders for payment of taxes, insurance and other expenses on defaulted subprime loans.

RFC, which provides warehouse financing for home loans as the mortgage unit of GMAC Financial Services, bought $7.8 billion...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.