AG Cooper Questions GMAC Mortgage’s Foreclosure Actions

Release date: 9/28/2010

Raleigh: Attorney General Roy Cooper’s Consumer Protection Division has launched an investigation into questionable tactics during foreclosures by Ally Financial and its subsidiary, GMAC Mortgage.

The move comes following revelations that GMAC Mortgage employees may have routinely signed off on large numbers of foreclosure affidavits without properly reviewing them or verifying their accuracy. As a result, some North Carolinians could have lost their homes who shouldn’t have.

“Many North Carolina homeowners are struggling during these tough times to hold on to their homes,” said Cooper. “I want to make sure that foreclosure actions by mortgage companies follow the law and give homeowners a fair chance to keep their homes.”

In a letter sent late Monday to Ally Financial and GMAC Mortgage, Cooper’s office asked the mortgage giant to provide more information about claims that the company failed to provide accurate information on foreclosure documents filed with the courts.

As a result of the allegations, GMAC Mortgage announced last week that it would suspend foreclosure evictions in North Carolina and 22 other states. Cooper wants to verify that announcement and get more specifics on the suspension of evictions.

“We understand GMAC Mortgage has voluntarily agreed to cease evictions related to foreclosures it has completed in this State,” the letter states. “This is a positive step but we do not have any confirmation of the nature or extent of this apparent voluntary moratorium.”

The letter also asks the lender to meet with Cooper’s office to determine what impact the lender’s practices have had on North Carolina homeowners.

Contact:  Jennifer Canada, (919) 716-6413

SOURCE: North Carolina Attorney General



Letter – AG Cooper Questions GMAC Mortgage’s Foreclosure Actions