Article: ResCap suing brokers who originated bad mortgage loans; The Bloomington-based warehouse lender alleges that defendants misrepresented data on borrowers and should buy back the troubled loans.(BUSINESS)

Byline: DAVID PHELPS; STAFF WRITER

A division of ResCap, the embattled mortgage-finance arm of GMAC Financial Services, is fighting back in the home-lending credit crisis.

The Bloomington-based investor has filed more than a dozen federal lawsuits in Minnesota against mortgage companies, claiming that they failed to do adequate due diligence on borrowers and provided inaccurate information about the financial wherewithal of loan applicants.

ResCap, through its Residential Funding Co. unit, is seeking millions of dollars for nonperforming loans that it financed from mortgage brokers around the nation.

Securities and real estate experts expect more lawsuits to ...

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