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Mortgage Crisis Watch Business and legal issues affecting: loan repurchases | mortgage-backed securities | mortgage insurance

Tag Archives: ResCap

SEC Investigating ResCap for Possible Mortgage Fraud

The U.S. Securities and Exchange Commission is investigating bankrupt Ally Financial mortgage unit Residential Capital, LLC, for possible misconduct and misrepresentation in its mortgage lending and underwriting practices. The SEC disclosed in court documents on Monday that it formerly commenced an investigation in February of this year to probe possible fraud in the offer and… Continue Reading

Residential Capital Files Bankruptcy: Part 2 of 2

ResCap and Ally Will Not Challenge Repurchase Claims In Part 1 of this series, we discussed the circumstances leading to the bankruptcy filing of Residential Capital (ResCap) , a residential mortgage loan originator and a subsidiary of Ally Financial Inc. (formerly GMAC.) In anticipation of the bankruptcy filing, ResCap’s board had approved the bankruptcy filing… Continue Reading

Residential Capital Files Bankruptcy: Part 1 of 2

Subsidiary of Ally Financial Inc. Files Chapter 11 Bankruptcy Residential Capital, a residential mortgage loan originator and a subsidiary of Ally Financial Inc. (formerly GMAC), filed for Chapter 11 bankruptcy protection in New York on May 14, 2012. Ally Financial was the financial arm of General Motors and, while taxpayers currently own only approximately 25%… Continue Reading