SEC Probing Ally’s (GMAC) ResCap for Possible Mortgage Fraud

SEC probing ResCap for possible mortgage fraud

Aug 28 (Reuters) – The U.S. Securities and Exchange Commission is investigating Ally Financial mortgage unit Residential Capital for possible misconduct in its loan origination and underwriting practices.

The SEC disclosed in court documents that it had issued a formal order of investigation on Feb. 22 to probe possible fraud in the offer and sale of mortgage-backed securities by ResCap.

The SEC disclosed the inquiry in a court request to force R.R. Donnelley & Sons to turn over certain due diligence records the company prepared for investment banks that underwrote the securitizations.

The agency said it needed the reports to determine whether ResCap made “material misrepresentations or omissions about the mortgage loan pools that backed the securitizations under investigation.”

More here…


4 Responses to “SEC Probing Ally’s (GMAC) ResCap for Possible Mortgage Fraud”
  1. Barb says:

    Anyone know of a good lawyer who is willing to go after gmac on a contingency? My sister was scammed out of her home by Brendon flynn who used gmac to steal the equaity and then send the home into foreclosure. GMAC willing gave a flynn a fraudulent mortgage and when the heat was on the knowingly sold the fraudulent note to Saxon financial who knowingly and willing bought the fraudulent note and then proceeded to file for foreclosure.

  2. 1ofthemany says:

    Jail them too!!!!

  3. Jason Werner says:

    1. Why was this not done years ago.
    2. Why is the USDOJ being so quiet about this?
    3. Where is the USDOJ in criminally prosecuting these banks?

  4. sarah says:

    Oh no! Not the SEC! Once they’re on the case, you can expect swift…. capitulation.

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