Tag Archives: GMAC

The New York state court system has instituted a new filing requirement that officials say will prevent wrongful foreclosures and protect the integrity of the process. Lenders' counsel are now required to file an affirmation certifying that they have reviewed and verified the accuracy of foreclosure documents. The new mandate is in response to recent disclosures by major mortgage lenders of potential deficiencies in notarization and so-called ""robosigning"" of supporting paperwork.

GMAC Mortgage was the first company to halt foreclosures in 23 states because of concerns that the legal paperwork was not validated and processed correctly. After two months of reviewing individual case files, the company says it will restart foreclosure proceedings. Bank of America has also lifted its foreclosure suspension in 23 states. While both companies say they have found no instances in which a homeowner was wrongly foreclosed upon, at least one county sheriff in the judicial state of Illinois says he's not going to carry out their evictions until they provide further proof.

Ohio Attorney General Richard Cordray has filed a preliminary injunction seeking to prevent GMAC Mortgage from completing foreclosure sales in his state that he says are based on faulty affidavits. Cordray filed suit October 6th against GMAC; its parent, Ally Financial Inc.; and one of its employees, alleging fraud against Ohio consumers and Ohio courts. The preliminary injunction asks that GMAC stop its ""faulty affidavit practices"" while the lawsuit is pending.

Evidence of major servicers mishandling foreclosure paperwork has cast a cloud of doubt over the entire industry and servicing procedures across the board. Consumer advocacy groups and a number of state attorneys general have demanded a nationwide moratorium on foreclosures. But two senior White House officials have indicated that the Obama administration will not support an all-out foreclosure freeze. So far, five companies have announced voluntary foreclosure suspensions because of potential deficiencies in the legal paperwork.

Litton Loan Servicing LP, the Houston-based mortgage servicing unit of Goldman Sachs has joined the ranks of mortgage firms issuing a voluntarily foreclosure moratorium. The company has declined to release details of which states the suspension encompasses or how many loans it might affect.

PNC Financial Services Group is the fourth large lender to suspend foreclosures within the past three weeks because of potential deficiencies in the legal paperwork. The bank has reportedly notified its industry partners that it is holding up sales of foreclosed homes in judicial states for 30 days while the company reviews its internal servicing procedures.

Bank of America is expanding its foreclosure freeze from the 23 judicial states to include all 50 states. Consumer advocacy groups, state attorneys general, and federal lawmakers are all calling for GMAC Mortgage and JPMorgan Chase to also extend their foreclosure moratoriums nationwide. PNC Financial has reportedly become the fourth major lender to institute a foreclosure suspension in the judicial states. An announcement is expected to come as early as Tuesday of a joint investigation by attorney general offices in as many as 40 states.

The foreclosure paperwork gaffe at GMAC Mortgage has garnered heavy attention from the highest legal counsels in states across the country, and at least one attorney general is pressing charges. In a lawsuit filed Wednesday against GMAC Mortgage and Ally Financial, Ohio Attorney General Richard Cordray accuses the loan servicer and its agents of filing fraudulent affidavits in an attempt to mislead Ohio's courts. He is seeking a preliminary foreclosure injunction, $25,000 for every violation, and consumer restitution.

House Speaker Nancy Pelosi and fellow members of the California Democratic Congressional Delegation are petitioning federal regulators and the U.S. Department of Justice to launch a formal investigation into servicers' foreclosure practices. The request was prompted by the recent reports of systemic mishandling of foreclosure affidavits by three major mortgage servicers. Delegation members say they have received thousands of complaints from their constituents, which ""appear to outline a clear pattern of misconduct on the part of lenders and servicers.""

Questions about the legality of foreclosure proceedings have prompted Old Republic National Title Insurance to decide it will no longer insure titles to homes foreclosed by JPMorgan Chase and GMAC Mortgage. Chase and GMAC both halted foreclosure sales in 23 states and are reviewing legal filings that they say may have been signed without a notary's presence or without verifying the supporting documents.