Accredited Home borrowers seek official committee representation

By Caroline Salls

Pittsburgh, July 1 - Accredited Home Lenders Holding Co. borrowers Lyle and Patricia Wroan have asked the U.S. Bankruptcy Court for the District of Delaware to appoint an official committee of borrowers for the company's bankruptcy case, according to a Tuesday court filing.

According to the motion, "an unknown number of borrowers have lost or will lose their homes, their money and their good credit because of Accredited's loan products and sales tactics."

In addition, the Wroans said many Accredited Home borrowers could have causes of action against the company.

The Wroans said borrowers have historically not been adequately represented in mortgage lender cases.

"The borrowers' interests diverge from those of other creditors," the Wroans said in the motion. "As a result, other creditors cannot - and indeed should not, represent the interests of borrowers."

A hearing is scheduled for July 28.

Accredited Home is a San Diego-based mortgage banker. It filed for Chapter 11 on May 1. Its case number is 09-11516.

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