GMAC/Ally to Halt Residential Lending in Massachusetts

Mortgage & Real Estate

GMAC Mortgage on Friday said it will no longer purchase loans originated by mortgage correspondents or brokers in Massachusetts, citing the regulatory environment in the state.

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 robosignings. 

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.”

Daily Briefing | Friday, December 2, 2011

  • B of A Begins Shedding Warehouse Clients

    Over the past week or so Bank of America began telling a select group of its warehouse lending clients that their lines would terminate within 30 to 90 days.

  • Mortgage Employment on the Rise – Brokers Lead

    Mortgage companies ramped up hiring in October, adding 1,500 full-time employees to their payrolls, according to government figures released Friday morning.

  • It’s Official: Fannie Inked Deal to Buy MSRs From B of A

    For several months Fannie Mae has insisted that it’s not in the servicing business, but a recent 10-Q filing by the government-owned GSE reveals that it agreed to buy $74 billion of MSRs from Bank of America in the third quarter. No purchase price was disclosed.

  • Title Premiums Almost Flat, but Fitch Upgrades Sector

    Title insurance firms wrote $2.35 billion of new business in the third quarter, down slightly from the same period last year, according to new figures compiled by the American Land Title Association.

  • Treasury Launches Task Force to Fight HAMP Fraud

    The Treasury Department this week unveiled a new joint task force to fight mortgage scams aimed at struggling homeowners seeking payment relief under the government’s Home Affordable Modification Program.

  • Trepp: Commercial Delinquencies Drop, but May Not be a Trend

    Delinquency rates on securitized commercial mortgages fell sharply in November for the first time in three months, but analysts at Trepp LLC don’t see it as a trend.

  • Amazing: Developers Keep Planning Condo Towers in So. Fla.

    Although some 4,700 units remain unsold from the last condo boom in South Florida, developers are now proposing to build 20 more towers in the tri-county area of Miami-Dade, Broward and Palm Beach.

  • Consumers Still Not Ready to Increase Borrowing

    Confidence surveys suggest consumer borrowing might be stabilizing as the economy shows signs of recovery, but it remains unlikely to increase in the short run, according to a Moody’s conference call on the outlook for consumer finance.

  • In a Sea of Bad Housing News, A Bit of Good

    Looking for some decent housing news for a change? Try this: A major land developer with 22 master planned communities in 14 states has already equaled last year’s sales.

Leave a Reply