Reverse Mortgage disclosure statement draws objection from Fannie Mae

By Sarah Lizee

Olympia, Wash., March 14 – Reverse Mortgage Investment Trust Inc.’s disclosure statement for its Chapter 11 plan of liquidation drew an objection from Federal National Mortgage Association (Fannie Mae), according to documents filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Fannie Mae said the disclosure statement doesn’t provide creditors enough information on the treatment of setoff and recoupment rights under the proposed plan.

Fannie Mae also took issue with the proposed treatment of setoff and recoupment rights, and said the plan attempts to improperly curtail those rights and fails to properly preserve them.

Fannie Mae said it is in the process of negotiating with the debtor regarding a potential settlement of all claims by and between the parties.

A hearing on the disclosure statement is scheduled for March 21.

The Bloomfield, N.J.-based reverse mortgage issuer filed Chapter 11 bankruptcy on Nov. 30 under case number 22-11225.

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