Insurers Cry Foul Over $8.7B ResCap MBS Settlement

Law360, New York (February 4, 2013, 1:04 PM EST) -- Bankrupt Residential Capital LLC's insurer-creditors on Friday blasted its proposed $8.7 billion settlement with 392 securitization trusts over warranty breaches tied to residential mortgage-backed securities, saying the deal was designed to protect the interests of the mortgage company’s parent Ally Financial Inc.

The objectors — which include MBIA Inc., Wilmington Trust NA  and Assured Guaranty Municipal Corp. — told U.S. Bankruptcy Judge Martin Glenn that ResCap’s decision to grant an allowed of $8.7 billion for contractual loan repurchase claims was, in MBIA's words, “a thinly veiled...
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.