Ditech’s Consumer Creditors Group Opposes Bankruptcy Sale

Customers of Ditech Holding Corp. are opposing the bankrupt mortgage servicer’s plan to sell assets, fearing that their financial claims would not be addressed.

A creditor committee representing the customers who have claims against Ditech say the proposed bankruptcy sale of its mortgage business to New Residential Investment Corp. can stifle customers’ right to correct overstated accounts, fight wrongful foreclosures, and recoup any payments, according to the committee’s court filing July 18.

The customers are alleging that Ditech, which filed for Chapter 11 bankruptcy in February, made errors and mishandled their mortgage accounts. Ditech’s $1.05 billion sale would discharge all ...