In 1982, Residential Funding Company LLC was formed as a subsidiary of Northwest Bank.

[3] As of the end of 2006, the company had $48 billion, or 76% of its mortgage portfolio invested in subprime loans.

[11] On December 11, 2013, the company's Plan of Reorganization was approved by the bankruptcy court.

[12] In September 2008, after suffering heavy losses during the subprime crisis, New Jersey Carpenters Health Fund sued the company and the underwriters of residential mortgage-backed securities issued by affiliates of the company, claiming that the prospectuses and registration statements of the RMBS did not adequately disclose the risks, were misleading to investors, and violated securities law.

The company settled for $100 million and the 3 underwriters, Citigroup, Goldman Sachs Group and UBS AG, settled for $235 million, which was approved by the court in 2015.