Feds Again Get Nod For MBS Suit Against ResCap Affiliates

Law360, New York (August 13, 2013, 12:35 PM EDT) -- The Federal Housing Finance Agency may advance its lawsuit over mortgage-backed securities against affiliates of bankrupt Residential Capital, a federal judge in New York ruled on Monday, thwarting a second attempt to stay the fraud proceedings until ResCap emerges from bankruptcy.

The court had already denied the affiliates’ motion to stay, but an appeals court in July sent the case back to the district court to determine whether the fraud suit against ResCap’s nondebtor corporate affiliates — including Ally Financial Inc., Ally Securities and GMAC Mortgage...
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