Bankruptcy Law News

Bank of America to Pay Bankrupt Ditech $7.6 Million in Settlement

June 13, 2019, 9:05 PM

Bank of America Corp. agreed to pay $7.6 million to bankrupt mortgage servicer Ditech Holding Corp. to settle a dispute stemming from their 2013 deal involving home mortgages.

Ditech asked the U.S. Bankruptcy Court for the Southern District of New York June 12 to approve the agreement, and the court will hold a hearing on it June 20. Ditech, which filed for Chapter 11 protection in February, must obtain court approval for any settlements reached with creditors and other parties in the case.

In 2013, Ditech bought Bank of America’s servicing rights to some mortgages. In their agreement, Bank of...

To read the full article log in. To learn more about a subscription click here.