AG Coakley Asks Lawmakers To Investigate Ally

Massachusetts Attorney General Martha Coakley has petitioned the heads of the Senate Banking Committee and the House Financial Services Committee to investigate Ally Financial Inc., one of five lenders Coakley sued last week for what her office alleges to be illegal foreclosures and deceptive loan servicing.

Coakley also named in her legal actions Bank of America, JPMorgan Chase, Citi and Wells Fargo, as well as mortgage registry MERS. The day after Coakley announced the suits, Ally declared its GMAC unit would pull most of its lending in Massachusetts due to recent developments that ‘have led mortgage lending in Massachusetts to no longer be viable."

In letters to the committees' chairmen Tuesday, Coakley asked that the committees investigate Ally's activities.

"The federal government should not tolerate Ally's serious misconduct and instead should hold them accountable for unlawful actions taken against borrowers," Coakley wrote, according to a report in Bloomberg's Businessweek.

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