I have decided not to lock-in any loans with GMAC/Ally Financial, until I see a resolution for their current problems. Ally Financial, the former GMAC, still owes taxpayers a lot of money from the bailout we gave them! This was part of the General Motors and Chrysler bailouts, and included their financing divisions, one of which is the mortgage lending division of GM. The GMAC/Ally home mortgage subsidiary is in bankruptcy court to try end the pain from its poorly performing mortgage assets, to help achieve some stability for GMAC/Ally’s profitable businesses, such as car loans and direct banking. We will see what happens, but until I see a solution, I will not be locking in a loan with them.
I remember having this same problem late last year with the mortgage division of Metlife. They had great rates, and a lot of we loan officers were locking in loans with them. But then we heard they were only offering great rates to get their volume up, to make them look attractive for sale, to find a buyer for their mortgage division. They were unable to find a buyer, and closed the doors of the mortgage unit. They did end up honoring their prior lock-ins, but told me I had better get all the loans I had locked in with them closed in 2 weeks, or really soon thereafter. I got all my loans closed, but it was a panic to do so, and there was the potential for my clients to lose their lock-ins.
This is one more reason to be really careful who you work with when you are choosing a mortgage lender.