Moody’s considers GMAC servicer rating downgrade

From Housing Wire.

Moody’s Investors Service will review GMAC Mortgage, now known as Ally Financial, for a possible downgrade of its servicer quality rating following recent issues with foreclosure documents

A spokesman for Moody’s told HousingWire this is a review of the primary servicer operation at GMAC, and that its master servicing rating has been confirmed…

The incident could result in delayed foreclosure timelines, legal challenges to previously completed foreclosures, and reputational risk…

As of July 31, GMAC’s primary servicing portfolio totaled 26 million loans for an unpaid principal balance of roughly $380 billion.