Mortgage Borrowers in Ditech Bankruptcy Secure Representative

Mortgage consumers of Ditech Holding Corp. now have an official representative in the company’s bankruptcy proceeding.

The U.S. Trustee, a Justice Department branch overseeing bankruptcy cases, filed May 2 a notice that an official committee representing Ditech consumers has been formed.

The committee, created after two written requests from Ditech creditors, will represent consumers asserting claims against the mortgage servicer and provider based on their mortgage relationships, including collections, refinancing, and foreclosures.

The U.S. Trustee’s appointments of official committees of general unsecured creditors in significant bankruptcy cases aren’t unusual. But specialized committees for specific constituents are less common.

Ditech filed ...