American Home Mortgage Wins Contract Fight

Law360 (January 7, 2008, 12:00 AM EST) -- A bankruptcy judge has ruled that American Home Mortgage does not have to transfer mortgage-servicing rights on more than $1 billion of home loans to Wall Street banks.

Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware handed the mortgage lender a victory in the adversary proceeding in his opinion issued Friday.

He said there was "no basis" to require American Home Mortgage to hand over the right to service the mortgage loans under a contract the mortgage lender had inked...
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