Ally/GMAC Told Freddie Of Dubious Documents Weeks Before Slamming Brakes On Its Own Foreclosures

Bloomberg News reports:

• Ally Financial Inc.’s GMAC Mortgage unit told Freddie Mac that foreclosures by the auto and home lender might have been faulty weeks before halting its own evictions, according to two people briefed on the matter.

• Ally informed Freddie Mac on Aug. 25 that affidavits for court proceedings might not be valid, according to a person with direct knowledge of the matter. By Sept. 1, Freddie Mac had notified its network of lawyers and stopped related foreclosures and evictions, said the person, who declined to be identified because the matter hasn’t been formally disclosed. GMAC told agents to halt evictions in 23 states on Sept. 17.

For more, see Ally Said to Tell Freddie Mac of Faulty Foreclosures Weeks Ago.