Homeowners Hurt by Mortgage Scam Seek Role in Ditech Bankruptcy
- ‘Vulnerable’ homeowners request committee to protect interests
- Ditech seeks plan that would release firm from legal liability
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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.