Bankruptcy Law News

Homeowners Hurt by Mortgage Scam Seek Role in Ditech Bankruptcy

April 22, 2019, 3:14 PMUpdated: April 22, 2019, 8:01 PM

Homeowners in Chicago cheated by a mortgage fraud scheme are seeking to form a committee to protect their interests in the bankruptcy of Ditech Holding Corp., the company that owns their loans.

The Investor Protection Center at the Northwestern Pritzker School of Law filed a request for the creation of a committee of consumer creditors to represent borrowers who were victims of the scheme. The fraud targeted elderly African-American homeowners and coerced them into reverse mortgages with no benefits that left some in foreclosure, the filing states.

Ditech, the mortgage lender and servicer led by Tom Marano, filed for bankruptcy...

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