Residental Capital, LLC et al.

Welcome to the GMAC Mortgage Lender Placed Insurance Class Action Settlement Website

United States Bankruptcy Court, Southern District of New York
Case No. 12-12020 (MG)

NOTICE OF PENDENCY OF CLASS ACTION: Please be advised that your rights may be affected by a class action settlement that has been proposed in the above-captioned bankruptcy before this Court, if you are a residential mortgage loan borrower whose loan was serviced by GMAC Mortgage, LLC (“GMACM”) and from whose payments GMACM recouped or recovered, in whole or part, charges for lender-placed hazard insurance on residential real property (“Lender-Placed Insurance”), including, without limitation, any borrower whose payment was applied, in whole or part, to charges for Lender-Placed Insurance, at any time from February 3, 2004 through October 2, 2013 (the “Class Period”). Members of the Settlement Class will be affected by the Settlement, if approved by the Court, and may be eligible to receive a payment from the Settlement.

As an “Allowed Borrower Claim” in Class GS-5 under the Chapter 11 Plan, the Allowed Claim is estimated under the Disclosure Statement to yield a $0.30 per $1 recovery under the Borrower Claims Trust. Distribution of the Net Settlement Fund is estimated by Plaintiffs’ Counsel to yield a recovery of 2.7¢ per $1 of Recognized Loss.

NOTICE OF SETTLEMENT: The Court-appointed Class Representatives, on behalf of themselves and the Settlement Class, have reached an agreement to settle the Bankruptcy Proofs of Claim for an allowed unsecured claim not subject to subordination in the amount of $13 million (the “Settlement”). If the Settlement is approved by the Court, all claims asserted by the Named Plaintiffs in the Bankruptcy Proofs of Claim on behalf of themselves and the Settlement Class Members against all the Settling Defendants, as well as other Released Parties, will be resolved.

A class action is a type of lawsuit in which similar claims of a large number of individuals or entities are resolved together, thereby allowing for the efficient and consistent resolution of the claims of all class members in a single proceeding. In a class action lawsuit, the court appoints one or more people, known as class representatives, to sue on behalf of all people with similar claims, commonly known as the class or the class members. In this proceeding, the Court has appointed Named Plaintiffs Landon Rothstein, Jennifer Davidson, Robert Davidson, and Ihor Kobryn to serve as the class representatives (hereinafter “Class Representatives”), and the Court has approved the Class Representatives’ selection of the law firm of Kirby McInerney LLP to serve as Class Counsel in the proceeding.

The Settlement Class, certified by the Court, includes all residential mortgage loan borrowers whose loans were serviced by GMACM and from whose payments GMACM recouped or recovered, in whole or part, charges for Lender-Placed Insurance, including, without limitation, any borrowers whose payments were applied, in whole or part, to charges for Lender-Placed Insurance, at any time from February 3, 2004 through October 2, 2013.