Residential Capital (ResCap), the bankrupt mortgage unit of Ally Financial, should be barred from selling its loan servicing unit until the company provides more information about the deal, investors who bought ResCap mortgages said in court papers.

Fannie Mae and Freddie Mac, the two government-chartered mortgage buyers, on Monday objected to the sale, claiming that without changes the proposed deal may threaten contracts they have with ResCap to service loans.

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