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Judge OKs ResCap plan to end funding for HELOCs

A judge said Residential Capital can stop funding home equity lines of credit as the mortgage company goes through bankruptcy, according to Dow Jones Newswires.

ResCap, which filed for Chapter 11 protection May 14, said the maximum availability for borrowers on existing lines of credit exceeds $2 billion. The subsidiary of Ally Financial will honor certain lines held by the bank.

Read more at The Wall Street Journal.

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