Seventeen RMBS institutional investors represented by Gibbs & Bruns and Ropes & Gray have reached an agreement with Residential Capital (ResCap) and its affiliated debtors.

The firms' clients will support ResCap's bankruptcy plan in return for a settlement of their rep and warranty claims. ResCap will stipulate $8.7 billion in rep and warranty claims worth 3.9% of the $221 billion in original unpaid principal balance. The claims are on 392 securitization trusts issued by ResCap's affiliates between 2004 and 2008.

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