GMAC to Halt Residential Lending in Massachusetts

Original Article by Brad Fkilelstein... Following Comments by Me - Doug Huggins

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GMAC/Ally to Halt Residential Lending in Massachusetts

Friday, December 2, 2011
By Brad Finkelstein

GMAC Mortgage on Friday said it will no longer purchase loans originated by mortgage correspondents

GMAC, a unit of the government-owned Ally Financial, said it will honor all commitments through December 5. At press time no other details were available.

Ally/GMAC is one of five megaservicers sued by Massachusetts this week, which alleged foreclosure violations tied to robo-signings. 

In its release, GMAC said, "recent developments have led mortgage lending in Massachusetts to no longer be viable." It will continue to service its existing loan portfolio that was originated in the state.

The release added that, “The company is disappointed that it can no longer participate in offering certain financing options in Massachusetts; however, it has an obligation to manage risks and deploy capital in an appropriate manner and in a way that protects the investment of the U.S. taxpayer."

 

COMMENTS:

Okay, here's another example of what happens to the borrowing public when some possible well meaning government agecny steps into it and trys to over regulate mortgage lenders. The citizens of Massachusetts now have less mortgage options to help them either buy, refinance or sell a home. In a slow housing market why do politicians think it is a good idea to limit consumers' options. AMAZING!!