The Department of Justice has subpoenaed General Motorsrequesting documents detailing the company's origination andsecuritization of subprime loan contracts dating back to 2007.

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GM Financial, the parent company of GM, confirmed it receivedthe subpoena July 28, according to several media outlets includingthe New York Times.

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The Department of Justice sought information on GM'sunderwriting criteria for a civil investigation into whether thecompany violated the Financial Institutions Reform, Recovery, andEnforcement Act of 1989 by failing to fully disclose to investorsborrowers' credit worthiness for certain loans.

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“Our understanding is that the request is focused on thesubprime finance space in general,” Susan Sheffield, an executivevice president at GM Financial, told the New York TimesMonday.

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GM said it will provide the requested documents.

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In collaboration with the Consumer Financial Protection Bureau,the DOJ said they have ramped up efforts to address discriminatoryauto lending practices.

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In December 2013, both agencies announced the federalgovernment's largest auto loan discrimination settlement in historyto resolve claims that Detroit-based AllyFinancial Inc. and Ally Bank engaged in an ongoing nationwidepattern or practice of discrimination against African-American,Hispanic and Asian and Pacific Islander borrowers in their autolending since April 1, 2011.

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Ally agreed to pay $80 million in compensation for victims ofpast discrimination and $18 million to the CFPB's Civil PenaltyFund. Ally also must refund discriminatory overcharges toborrowers for the next three years unless it significantly reducesdisparities in unjustified interest rate markups.

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