Mortgage Firm Files for Bankruptcy Amid Housing Market Deep Freeze

  • Reverse mortgage specialist seeks bankruptcy in Delaware
  • Company lists liabilities of at least $10 billion in filings
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Starwood Capital-backed home lender Reverse Mortgage Funding LLC filed for Chapter 11 bankruptcy, the latest company to succumb amid a rapid run-up in mortgage rates.

The company, which makes reverse mortgages, listed assets and liabilities of at least $10 billion each in its bankruptcy petition. Chapter 11 bankruptcy allows companies to keep operating while they work on a plan to repay creditors.