California Attorney General Jerry Brown late Friday ordered the government-owned Ally Financial to stop foreclosing on homes in the state if it cannot prove immediately that it is complying with state law.

Brown, who is running for California governor, issued the order after an Ally Financial employee described as a foreclosure specialist recently admitted he signed off on hundreds of legal documents a day without examining them. In several cases, the legal documents weren't signed in the physical presence of a notary public.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.