Residential Capital LLC, as it marches toward exiting bankruptcy, is asking a judge to approve the settlement of a $ 99.7 million class-action lawsuit over alleged improper fees it charged on loans made more than nine years ago, Dow Jones Newswires reported yesterday. ResCap said in a court filing on Tuesday that it will pay $14.5 million to the borrowers, in addition to the $12.9 million it already paid after losing previous court trials on the matter. While the settlement was reached in early 2012, ResCap's bankruptcy case triggered a halt of pending litigation. Now, less than a week away from asking a judge to clear its chapter 11 exit, ResCap is asking him to lift the automatic stay allowed by bankruptcy law so he can approve the deal. The settlement includes 248 loans and about 365 potential borrowers on those loans, ResCap said. The plaintiffs alleged that two ResCap subsidiaries collected improper fees and interest on second mortgages. While those borrowers initially won a $99.7 million judgement, a lower court called for a new trial over much of that money.
