ResCap Sets Aside $12.3M For Ambac's Sale Challenge

Law360, New York (February 19, 2013, 6:15 PM EST) -- Residential Capital LLC told a New York bankruptcy court Friday that it had agreed to reserve up to $12.3 million for a potential settlement to satisfy Ambac Assurance Corp.'s objections to the sale of its mortgage loan origination and servicing platforms to Ocwen Financial Corp.

ResCap said it would reserve $12.3 million in cash in an attempt to satisfy an objection made by Ambac disputing the sale of residential mortgage-backed securities, which the insurer had guaranteed before ResCap's May bankruptcy.

“The debtors and Ambac shall continue...
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