Bloomberg Law
Feb. 2, 2023, 10:02 PM

Residential Funding’s Trust Wins Ruling Over $14 Million Fee

Matthew Bultman
Matthew Bultman

A liquidating trust for now-defunct Residential Funding Co. won an appellate ruling to receive $14 million in attorneys’ fees, after Eighth Circuit judges found that the company’s opponent in a legal battle over mortgage securities drove up litigation costs.

The appeal stems from Residential Funding’s contracts, dating before the 2008 financial crisis, to buy mortgages from Primary Residential Mortgage Inc. (PRMI) for the purpose of securitizing them for sale.

After Residential Funding went bankrupt, its liquidation trust launched legal battles against numerous sellers it believed had breached deals by selling defective mortgages.

PRMI, a Utah-based lender, argued that ResCap Liquidating ...

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