Another mortgage settlement took a step closer to completion this week, with bankrupt Residential Capital LLC receiving final approval from a New York bankruptcy judge to proceed with a proposed settlement involving mortgage borrowers associated with the company.
The settlement would reduce an original $1.9 billion claim to $300 million, according to a report published this week.
U.S. Bankruptcy Judge Martin Glenn signed off on the accord after language was added to the document to placate PNC Bank NA, which worried that the deal could interfere with its rights in a related multidistrict litigation pending in Pennsylvania federal court.
