GMAC Mortgage on Friday said it will no longer purchase loans originated by mortgage correspondents or brokers in Massachusetts, citing the regulatory environment in the state.
GMAC, a unit of the government-owned Ally Financial, said it will honor all commitments through December 5. At press time no other details were available.
Ally/GMAC is one of five megaservicers sued by Massachusetts this week, which alleged foreclosure violations tied to robosignings.
In its release, GMAC said, "recent developments have led mortgage lending in Massachusetts to no longer be viable." It will continue to service its existing loan portfolio that was originated in the state.
The release added that, “The company is disappointed that it can no longer participate in offering certain financing options in Massachusetts; however, it has an obligation to manage risks and deploy capital in an appropriate manner and in a way that protects the investment of the U.S. taxpayer."
