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GM Subprime Auto Lending Draws Attention of Investigators

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Federal prosecutors are asking questions about the practices of General Motors Co.’s financing unit, subpoenaing the company in the midst of a resurgence in U.S. auto sales fueled partly by a subprime lending boom.

The Justice Department is seeking documents on underwriting criteria, origination, warranties and securitization of subprime loans since 2007, GM Financial said in a filing yesterday. “There are no allegations set forth in the subpoena and GMF is cooperating,” said Chrissy Heinke, company spokeswoman.