ResCap Unit GMAC Hit With Suit Over Servicing Agreement

Law360, New York (November 13, 2012, 7:28 PM EST) -- American Residential Equities LLC, trustee for purchasers of residential mortgage loans, filed suit in New York bankruptcy court Friday accusing Residential Capital LLC affiliate GMAC Mortgage LLC of failing to pay money due to ARE and artificially inflating insurance prices.

ARE, as trustee under an August 2005 master trust agreement, accuses GMAC of failing to perform its obligations and to timely and fully remit payments to ARE as required under a servicing agreement between them, which required GMAC to keep any money it received in connection...
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