Merkley calls for investigation against Ally Financial

Source: Daily Journal of Commerce

By Nick Bjork October 4, 2010

It was only time before the handling of foreclosures by loan providers made it to the political arena. And it looks like U.S Sen. Jeff Merkley, D-Ore., will be leading the push.

Merkley sent a letter today to U.S. Treasury Secretary Timothy Geithner and U.S. Secretary of Housing and Urban Development Shaun Donovan urging them to launch an independent investigation against Ally Financial.

Ally Financial, the nation’s largest servicer of home mortgages, halted foreclosure proceedings in 23 states last week after it was discovered that thousands of foreclosure documents had not been properly reviewed. J.P. Morgan Chase, GMAC Mortgage and Bank of America also have frozen their foreclosure hearings until the matter is resolved.

“Ally Financial did not exercise proper professional standards as decisions were made about the fate of families struggling to maintain their homes,” Merkley wrote in his letter. “These reports are even more disturbing because the U.S. Government is a majority stakeholder in Ally Financial.”

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