ResCap off block

The government’s $17 billion investment in Ally Financial that consumer financial protection honcho Elizabeth Warren called questionable may now take longer to recoup.

Ally, the former GMAC, said yesterday it decided against selling ResCap, America’s fifth biggest mortgage servicer.

Uncle Sam-owned GMAC roughly four weeks ago asked suitors for final bids.

A source close to the process said that Ally needs to sort out liability issues before selling the business.

Ally has yet to reach an agreement with Fannie Mae on how much it needs to pay it to repurchase poorly written loans. Separately, it has temporarily stopped foreclosures in 23 states.