Ally Financial Will Halt Mortgage Purchases in Massachusetts
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Ally Financial Inc.’s GMAC Mortgage unit will stop buying home loans in Massachusetts after the state accused the five biggest mortgage lenders of conducting illegal foreclosures.
The halt, which affects loans originated by correspondent lenders and wholesale brokers, is “because recent developments have led mortgage lending in Massachusetts to no longer be viable,” the Detroit-based company said in a statement. Ally, owned mostly by the U.S. government after being bailed out during the 2008 financial crisis, is ranked fifth this year among the nation’s mortgage providers.