Judge Refuses To Bar RTC Sale
A federal judge in Dallas has refused to block the Resolution Trust Corp.'s sale of the largest mortgage company under its control.
Affiliated Computer Systems had sought a temporary restraining order to block the sale, arguing that the bidding for BancPlus Mortgage Corp. had been unfair.
Affiliated, a Dallas-based data processing firm that wants to enter mortgage banking, lost the bidding to a group led by BancPlus' senior management.
Judge Robert B. Maloney of U.S. District Court ruled Wednesday that blocking the sale would violate the RTC's powers as receiver for BancPlus.
"We think the judge decided the point incorrectly, and we're now trying to assess our options," said Henry Hortenstein, Affiliated's director of mortgage banking.
