NY AG Sues Ditech Over Bankruptcy Filing

Jul 23, 2019

New York Attorney General Letitia James has filed a brief in the U.S. Bankruptcy Court for the Southern District of New York seeking to prevent the bankruptcy filing by Ditech Holding Corp.

According to a statement issued by James’ office, Ditech has more than 880 active foreclosure actions pending across New York State. Homeowners impacted by these actions have organized the Consumer Creditors Committee to prevent their claims and defenses against the servicer are not erased in Bankruptcy Court. James’ office also has currently an open investigation into Reverse Mortgage Solutions (RMS), a reverse mortgage servicer that is owned by Ditech.

“Bankruptcy Court should never be used as a tool to unjustly oust New Yorkers from their homes,” said James. “Ditech’s action is an illegal attempt to strip hundreds of homeowners of their legitimate claims and eviscerate New York’s carefully-created foreclosure process. Housing is a right, and we will continue to use every legal tool at our disposal to stand up for homeowners and to protect their rights.”

About the author

Phil Hall

Link copied

Published

Jul 23, 2019

Analysis and Data

Mortgage Rates Edge Down To 7.32%, Offering Limited Pipeline Relief

The modest decline trims borrower payments, while year-end forecasts above 7% leave LOs focused on deals already close to working

The first mortgage-rate decline in two months trims about $22 from the monthly payment on a $400,000 loan. For LOs trying to salvage year-end transactions, that creates an opening among borrowers already close to making the numbers work.Freddie Mac reported Thursday that the...

Operations

LO Compensation: What The Split Doesn’t Tell You

NMP’s Ignite summit explored the rules, expenses, and platform differences that shape what originators actually earn

A loan officer willing to earn less to win a borrower can still run into a compensation problem. The sticking point is how that smaller paycheck is determined, who funds it, and whether the arrangement connects compensation to the loan’s terms.That tension drove National Mor...

Nov

Pasadena, CA

More from

Regulation and Compliance

Trump Targets Mortgage Insurance, Refi Costs In Sweeping Housing Order

The executive order calls for automatic mortgage insurance cancellation, expanded title insurance alternatives, and cheaper refinances, potentially changing how lenders and servicers handle borrower costs

Regulation and Compliance

Oct 23, 2026

What The 2026 Election Means For Mortgage Professionals

CHLA’s Scott Olson examines how the next Congress could reshape housing tax breaks, lending costs, and access to homeownership — and where bipartisan deals remain possible

Opinion

Oct 22, 2026

Servicer Takes New York Payment-Fee Fight To Federal Court

Onity Group says the state hasn’t clearly defined how fees for optional expedited payments must relate to the cost of providing the service

Regulation and Compliance

Oct 21, 2026

January’s Condo Reserve Increase Puts Project Budgets In Focus

Fannie Mae and Freddie Mac’s higher allocation requirement gives LOs reason to review association finances now, while California’s new funding duties begin in 2032

Regulation and Compliance

Oct 21, 2026

California Probes Lenders Over Delayed Wildfire Insurance Payouts

State regulators are examining access to rebuilding funds, while CalHFA offers financing tools for eligible disaster survivors

Regulation and Compliance

Oct 20, 2026