GMAC Mortgage, a unit of Ally Financial Inc, has asked some outside vendors to suspend some evictions, a spokeswoman said.
Ally spokeswoman Gina Proia wrote in an email on Monday afternoon that all new residential foreclosures are continuing in the ordinary course of business with no interruption in our usual practice.
Proia said some outside vendors were suspending evictions because of a potential issue that was raised in a number of existing foreclosures challenging the internal procedure we used for executing one or more judicially required forms.
We are unable to comment on the specific merits of the challenge because some of them are in litigation, Proia's statement said.
Bloomberg reported on Monday that GMAC told brokers and agents to stop evicting homeowners in 23 states, citing a two-page GMAC mortgage memo.
Bloomberg said GMAC Mortgage told its brokers to stop evictions, cash-for-key transactions and lockouts, according to the document.
Bloomberg spokesman Ty Trippet said, We stand by our story.
(Reporting by Dan Wilchins and Maria Aspan; Editing by Lisa Von Ahn, Gary Hill)