Items Tagged with 'Bankruptcy'

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  • GE's subprime lender WMC Mortgage files for Chapter 11 bankruptcy

    Comes weeks after GE agreed to pay $1.5 billion fine for WMC's activities
    General Electric is moving closer to putting its failed attempt to capitalize on the subprime lending boom into its rearview mirror. Earlier this month, GE agreed to pay a fine of $1.5 billion as part of a settlement with the Department of Justice over the pre-crisis lending activities of the company's shuttered subprime lending unit, WMC Mortgage. And this week, WMC Mortgage filed for Chapter 11 bankruptcy.
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  • Wells Fargo to pay $13 million to settle claims of improperly modifying bankrupt borrowers’ mortgages

    Lawsuit accused bank of improperly filing mortgage payment change notices
    Wells Fargo will pay more than $13 million to settle a pending class-action lawsuit that accused the bank of “improperly” modifying the mortgages of borrowers who had declared bankruptcy. The complaint alleged that the bank engaged in “fraud, violations of bankruptcy rules and laws, and unfair and deceptive trade practices” by “improperly and unilaterally” modifying the mortgages of the bankrupt borrowers.
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  • Ditech files for Chapter 11 bankruptcy for second time in 14 months

    Financial difficulties persist for troubled nonbank
    It appears that the financial troubles of Ditech Holding Corp., the nonbank formerly known as Walter Investment Management, are far from over. Last year, the company emerged from Chapter 11 bankruptcy after completing a financial restructuring plan that eliminated $800 million in corporate debt. But that wasn’t enough to put the nonbank’s troubles behind it. Now, just 14 months after filing for Chapter 11, the company is filing for Chapter 11, again.
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  • SunTrust back in compliance with National Mortgage Settlement servicing rules

    Remedies failure of one metric
    SunTrust is back in compliance with all of the servicing requirements of the National Mortgage Settlement, the settlement’s monitor said in a report published early Tuesday. Joseph Smith, the monitor of the National Mortgage Settlement, said in the report that SunTrust did not fail any compliance metrics that his team tested during the second half of 2017.
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  • CFPB giving servicers “more latitude” in dealing with borrowers in bankruptcy

    Issues final rule on communication with certain borrowers
    Mortgage servicers are about to have “more latitude” when it comes to dealing with borrowers entering or exiting bankruptcy, the Consumer Financial Protection Bureau announced Thursday. The CFPB announced a final rule relating to certain borrowers facing bankruptcy. The rule was initially released by the CFPB back in October, but now the bureau is finalizing the rule.
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  • Walter Investment reveals new date for bankruptcy exit, name change

    Currently expected to happen later this week
    One week ago, Walter Investment Management Corp. disclosed that it would not be exiting bankruptcy on Jan. 31, 2018 as the company originally expected when its bankruptcy plan was approved by a federal court. Now, the company is providing more detail on when it now plans to exit bankruptcy.
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  • Walter Investment bankruptcy plan approved by court

    Company expects to exit bankruptcy proceedings by end of January
    Walter Investment Management Corp.’s plan to reduce $800 million in debt by filing for Chapter 11 bankruptcy has been approved by a federal court, the company announced this week. The company also announced that its board of directors will look much different when it exits bankruptcy.
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  • Walter Investment files for Chapter 11 bankruptcy

    Nonbank says prepackaged restructuring plan will reduce debt by $800 million
    Walter Investment Management Corp., which has suffered through several rough years, is taking a drastic measure as it fights to survive. The nonbank announced late this week that it is filing for Chapter 11 bankruptcy as part of a prepackaged restructuring plan that aims to eliminate $800 million in debt and place the company on firmer footing going forward.
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