GMAC Halts Some Mortgage Financing Amid Mass. Suit

Law360, New York (December 2, 2011, 4:53 PM EST) -- GMAC Mortgage LLC., a unit of Ally Financial Inc., will stop purchasing some types of mortgages in Massachusetts after being named, along with four other lenders, in a suit filed by the state's attorney general over allegedly improper foreclosure practices, GMAC said Friday.

The lender said it would stop financing new mortgage loans that are originated by smaller correspondent lenders and wholesale brokers, according to a statement. GMAC said it would honor all commitments with such lenders made as of Dec. 5.

The lender, whose parent...
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