Friday, October 08, 2010

Ohio suing Ally Financial/ GMAC

Cincinnati.com Wednesday morning reported that Ohio Attorney General Richard Cordray has filed a lawsuit against Ally Financial Inc. and its GMAC Mortgage division, alleging fraud that could involve hundreds of foreclosures in the state and asking for civil penalties of up to $25,000 for every violation of the state's consumer laws. [ See Press Release ]

"Authorities in at least six other states -- Connecticut, Florida, Texas, North Carolina, Iowa, and Illinois -- are probing whether lenders used false documents and signatures to justify hundreds of thousands of foreclosures," Wednesday's article says. "GMAC, JP Morgan and BofA have halted foreclosures in 23 states – including Ohio, Kentucky and Indiana – after evidence surfaced that employees or outside lawyers signed documents without reading them or filed inaccurate paperwork. In December, a GMAC employee said in a deposition in a foreclosure case filed in West Palm Beach, Florida, that his team of 13 people signed about 10,000 documents a month without verifying their accuracy."


Complaint

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