WASHINGTON (Reuters) - Senator Al Franken Thursday called on half a dozen federal agencies to investigatethe foreclosure practices of government-controlled AllyFinancial, which has been accused of kicking homeowners out oftheir homes with fraudulent documents.
"It is crucial that Ally and its employees are held fullyaccountable for any criminal misconduct," Franken wrote in aletter to Federal Reserve Chairman Ben Bernanke, AttorneyGeneral Eric Holder and other agency chiefs.
Ally subsidiary GMAC Mortgage announced last week that ithad suspended evictions and post-foreclosure closings in 23states due to concerns over paperwork.
At least four state attorneys general are investigatingAlly, formerly known as GMAC, for its foreclosure procedures.
The home lending unit of Ally Financial, which is 56.3percent owned by the U.S. government after a $17 billionbailout, has said employees preparing foreclosures hadsubmitted affidavits to judges containing information they didnot personally verify.
"Concerns have been raised that Ally's practices are not ananomaly in this industry," Franken wrote in the letter datedSept. 29 and made public Thursday.
On Wednesday, JPMorgan Chase and Co announced itwas also delaying foreclosure proceedings.
U.S. mortgage servicers are already struggling to deal withthe millions of homeowners unable to pay their mortgages, andthe announcements by Ally and JPMorgan have raised concernsthat process could grind to a halt. [ID:nN29283082] (Reporting by Corbett B. Daly; Editing by Andrew Hay)