GMAC/Ally has resumed correspondent lending in Massachusetts, effective Monday, according to an internal announcement obtained by Banker & Tradesman.
The mortgage lender stopped lending in the commonwealth in December, following Attorney General Martha Coakley’s announcement she was suing GMAC along with Bank of America, Wells Fargo, JP Morgan Chase, Citi and the Mortgage Electronic Registration System (MERS).
The announced lawsuit provoked considerable asperity from GMAC, which said in a December statement that it had decided mortgage lending in Massachusetts was "no longer…viable."
The lender went on to say it was "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."
Coakley is continuing to pursue the suit. But several of its central claims were withdrawn in the wake of the recently announced settlement between the 50 state attorneys general and the lenders. GMAC remains a party to the suit, but the remaining disputes center around the banks’ use of MERS, with the banks’ conduct in relation to robo-signing and loan modifications covered by the national settlement.
Asked what had prompted the change of heart, GMAC Spokeswoman Susan Fitzpatrick told Banker & Tradesman the company had re-evaluated the situation.
"GMAC Mortgage continually evaluates our business and makes changes as appropriate," Fitzpatrick said. "We are pleased to be back in the market and provide another source of financing for Massachusetts clients."
"I think it demonstrates that they’re passionate about lending in Massachusetts," said Jerami Marshal, president of the Massachusetts Mortgage Bankers Association.
"We’re glad they’re back," Marshal added. "GMAC has a lot of products that they design that are tailor-made for affordable housing and they are definitely a leader in FHA lending."
The attorney general’s office had no immediate comment.
