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Daily Real Estate News  |  June 30, 2011  |   Ally Subpoenaed Over Home Loan Losses
A mortgage servicing giant that once received a $17.2 billion government bailout is in trouble again. Ally Financial Inc., one of the five largest mortgage originators and servicers in the country, had its mortgage records subpoenaed by federal investigators this week.

The home lender acknowledged in a U.S. Securities and Exchange Commission filing that it received the subpoena and that investigators were wanting to know more about how the bank handled its home loans. The government is investigating whether the bank conducted possible fraud related to its “origination and/or underwriting of mortgage loans,” according to its SEC filing.

More specifically, investigators are looking at how mortgage originators approved home loans that were later bundled into securities and sold to investors. Many of these loans went bad after the housing market turned sour, leaving investors with billions in losses.

Source: “U.S. Seeks Records of Ally’s Mortgages,” Detroit Free-Press (June 30, 2011) and “Ally Subpoenaed,” Bloomberg (June 30, 2011)

Read more:

BofA Nears $8.5 Billion Record-Setting Payout






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