Mortgage Lenders Sued By Financial Backers For $9M

Law360, New York (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.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.