AARP
AARP v. First Alliance Mortgage Co. (In re First Alliance Mortgage Co.)
Opinion
Lead Opinion
Carter, J.
ORDER
DENYING LEAVE TO APPEAL
Appellants AARP and Ida Mae Forrest 1 appeal from the order of the Bankruptcy Court enjoining them from pursuing claims against various officers and agents of First Alliance Mortgage Company 2 , First Alliance Corporation, and First Alliance Portfolio Services (collectively First Alliance) 3 in separate actions pending in various state courts (the State Court Actions), pursuant to section 105 of the Bankruptcy Code. The Court deems the notice of appeal in this matter to be an application for leave to appeal. See Local Bankruptcy Rule 3.4. After reviewing the briefs submitted, the record in this and related matters, and for the reasons set forth below, the Court DENIES Appellants application for leave to appeal.
*426 I.
BACKGROUND
First Alliance has been in the business of subprime mortgage lending since 1971. First Alliance’s customers generally were borrowers who would have had difficulty obtaining loans from conventional sources because of poor credit ratings or insufficient credit histories. The loans, many of which were refinancings by homeowners who had developed significant equity in their homes, typically were secured by the borrowers’…