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Ally Financial Acknowledges Receipt of Mortgage-Related Subpoenas

""Ally Financial Inc."":http://www.ally.com, one of the nation's five largest mortgage servicers, acknowledged receipt of subpoenas from the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC) Wednesday.

The subpoenas are directed at Detroit-based Ally Financial Inc. and ""GMAC Mortgage LLC's"":http://www.gmacmortgage.com mortgage activities.


""The subpoena received from the SEC includes a broad request for documentation related to certain ‘bulk settlements' relating to mortgage loans placed in securitization trusts,"" Ally said in a filing with the SEC.

The subpoena from the Department of Justice requests documentation and information ""in connection with its investigation of potential fraud related to the origination and/or underwriting of mortgage loans,"" Ally said.

The home and auto lender previously received a $17.2 billion bailout from the U.S. government.

Ally acknowledged that the subpoenas ""may result in material adverse consequences including without limitation, adverse judgments, settlements, fines, penalties, injunctions, or other actions.""

Ally also noted, ""We continue to see signs of economic stabilization in the housing and vehicle markets, although our total credit portfolio will continue to be affected by sustained levels of high unemployment and continued uncertainty in the housing market.""

About Author: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.

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