The United States Department of Justice has subpoenaed General Motors Financial, according to a regulatory filing by the financial service arm of GM.
Reportedly served on July 28, the subpoena orders GM Financial “to produce documents dating back to 2007 relating to the underwriting criteria used to originate the auto loan contracts as the DoJ considers civil proceedings for a potential violation of Financial Institutions Reform, Recovery, and Enforcement Act of 1989,” writes Reuters.
Otherwise known as FIRREA, the act gives the DoJ the power to “sue over fraud affecting a federally insured financial institution.” Financial service firms have previously been under investigation by the DoJ for FIRREA violations as a result of lending habits that eventually led to the 2008 financial crisis; however, as Reuters notes, the subpoena served to GM Financial “could be one of the first public acknowledgements that investigators are also looking at the securitization of subprime auto loans.”
GM Authority will continue to report on the DoJ’s subpoena to GM Financial as more details emerge.
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