When Ally Financial’s mortgage unit Residential Capital filed for bankruptcy last week, I had an inkling it would spell trouble for the foreclosure fraud settlement the parent company signed with state and federal regulators. How would individuals get loan modifications in the midst of a bankruptcy proceeding? Now it looks like they won’t.
As Predicted, Ally Bankruptcy Will Delay Loan Modifications, Settlement Actions for Borrowers |
| By: David Dayen Monday May 21, 2012 9:40 am |


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