ResCap Liquidating Trust enters settlements in breach of contract case

By Sheri Kasprzak

New York, June 23 – The ResCap Liquidating Trust said Thursday it has entered into settlement agreements connected to 11 pending indemnity and breach of contract actions against correspondent lenders of Residential Funding Co. LLC since the close of last quarter on March 31.

Settling defendants include DB Structured Products, Inc. on behalf of itself and successor to Mortgage IT Inc., Gateway Bank F.S.B., Circle Mortgage Corp., Broadview Mortgage Corp., Fremont Bank, Mortgage Outlet Inc., Mortgage Network Inc., CMG Mortgage Inc., First Equity Mortgage Bankers Inc., Americash, and Willick & Volk.

“We are pleased that that trust has been able to achieve the settlements that we are reporting today,” said Mitchell Sonkin, chairman of ResCap’s board, in a statement.

“The trust intends to continue to vigorously pursue other pending correspondent lender actions in order to maximize recoveries for unitholders.”

Based in Minneapolis, ResCap was established under the Chapter 11 plan of Residential Capital LLC for the purpose of liquidating and distributing the assets of the debtors in the bankruptcy case.

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