Residential Capital LLC has reached a deal with borrowers to settle a class-action lawsuit over so-called high-cost mortgage loans, Dow Jones Daily Bankruptcy Review reported today. In a court filing on Wednesday, ResCap said it will create a fund with no less than $57.6 million, which will go to the borrowers on 44,535 second mortgage loans. The borrowers, who were suing ResCap over what they said was $1.87 billion in damages, will receive an allowed claim of $300 million in ResCap’s bankruptcy case.
