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MATTER OF DIAMOND MORTG. CORP. OF ILLINOIS

Bankruptcy Nos. 86 B 13066, 86 B 13067, Adv. Nos. 86 A 1283, 86 A 1284.

78 B.R. 196 (1987)

In the Matter of DIAMOND MORTGAGE CORPORATION OF ILLINOIS and A.J. Obie & Associates, Inc., Debtors. Wendell SINENI and Loretta Sineni, his wife, Plaintiffs and Counter Defendants, and the Official Committee of Matched Mortgage Holders, Plaintiff-Intervenor, v. DIAMOND MORTGAGE CORPORATION OF ILLINOIS, and A.J. Obie & Associates, Inc., Illinois corporations, Defendants and Counter-Plaintiffs, and the Official Unsecured Creditors' Committee of Diamond Mortgage Corp., Defendant-Intervenor-Counter-Plaintiff.

United States Bankruptcy Court, N.D. Illinois, E.D.

September 28, 1987.

Attorney(s) appearing for the Case

Myron M. Cherry, Cherry & Flynn, Chicago, Ill., Carl G. Becker, Carl G. Becker & Associates, Southfield, Mich., David N. Missner, Mark L. Prager, Bruce Dopke, Schwartz, Cooper, Kolb & Gaynor, Chtd., Chicago, Ill., for debtor.

Warren Krinsky, P.C., Chicago, Ill., for plaintiffs and counter defendants.

Ronald R. Peterson, C. Steven Tomashefsky, Jenner & Block, Chicago, Ill., for Official Unsecured Creditors' Committee.

Kenneth H. Denberg, Robert J. Vollen, Thea M. Pazen, Schwartz & Freeman, Chicago, Ill., for Matched Mortg. Holders' Committee.

MEMORANDUM AND OPINION

ROBERT E. GINSBERG, Bankruptcy Judge.

JURISDICTION

This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(F), (K), and (O).

FACTS

A.J. Obie and Associates, Inc. ("Obie") is a licensed mortgage broker. Diamond Mortgage Corporation of Illinois ("Diamond") made loans to consumer debtors secured by mortgages on the borrowers' homes. In order to provide funds...

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