Attorney General Martha Coakley urges Congress to investigate Ally Financial’s GMAC over foreclosure practices
Massachusetts Attorney General Martha Coakley today urged US lawmakers to investigate Ally Financial Inc. and its subsidiary, GMAC Mortgage, for allegedly carrying out illegal foreclosures and submitting false documents related to property seizures.
Coakley made the request in a letter sent five days after she filed a civil lawsuit against GMAC Mortgage and four other major US lenders for alleged mortgage fraud in Massachusetts. Coakley said today that she is asking Congress to look specifically at GMAC because it is largely owned by the US Treasury, following a $17 billion taxpayer-funded bailout in 2008 during the nation’s financial crisis.
The letter was addressed to the chairs of the US Senate Committee on Banking, Housing and Urban Affairs and the US House Committee on Financial Services. Coakley wrote, “In light of Ally’s alleged deceptive and illegal actions against homeowners in Massachusetts and across the country, I respectfully request that your committees investigate Ally’s serious misconduct and consider what actions the federal government can take to ensure that Ally adheres to the law.”
An Ally spokesman could not be immediately reached for comment.
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Letter below…
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4closureFraud.org
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letter-re-ally-financial-to-congress
AG Martha Coakley is the only one with enough courage to take on the banks. We need to flood her with support for her actions. She may be in Massachusettes and not speaking for the US as a whole but she keeps the spotlight on the banks and that is what is needed to give others the courage to step up and take action throughout the nation! You go girl! We are behind you 100%. Don’t let the banks buy their way out of this mess through the OCC or ithe SEC. Make them accountable! She has the power and can do it. I believe she would make a better president than those in the running now!
I was just watching President Obama’s speech on CNN about how CONgress should appoint Mr. Cordray as the head of the Consumer Financial Protection Bureau….The President said that there is no reason why CONgress should not appoint Mr. Cordray to the job..Consumers need protection and CONgress should not lose sight of how we got into this mess…the regulators were not doing their jobs. President Obama MISSED THE MARK, I believe when he said just ask the people who are now homeless because they were given loans they could not afford…That is just a fraction of the problem Mr. President…25% of Americans bought homes they could not afford and that was the fault of the lenders….It took my husband and I, 3 months to get approved for a home loan with 40% down in 1992 and we had A+ credit…It was the BUNDLING OF TOO MUCH RISK, THE OVERLEVERAGING AND OVERSPECULATION OF THE FINANCIAL INDUSTRY THAT CA– USED THE BUBBLE TO BE CREATED AND CA– USED THE BUBBLE TO BURST WHEN WALL STREET AND THE GSE’S COULD NO LONGER PAY THEIR BILLS…..THEY CREATED $700 TRILLION IN MORTGAGE DERIVATIVES FRAUD BACKED BY ZERO COLLATERAL…THEIR DEBTS CAN NEVER BE REPAID NO MATTER HOW MANY HOMES, BUSINESSES AND WEALTH THEY STEAL FROM THE 99%..and it was not just reckless..it was CRIMINAL….
Here is an excerpt from Deconstructing The Black Magic of Securitized Trusts from Oppenheim Law that gives a good explanation into how the biggest Financial Coup de tat of our wealth occured..
There are several key players within the subprime mortgage industry that contributed to the current crisis. In Confessions of a Subprime Lender, former industry insider Richard Bitner documents what he called the “mortgage industry “food chain” which sets forth the position and importance of various players who are involved in creating, packaging, and selling subprime mortgages as mortgage-backed securities.” The base of the food chain, like all good food chains, begins with the small animals that are building blocks for the larger predatory animals. In this food chain, the small animals include borrowers, mortgage brokers, and small time lenders. The larger animals include big lenders and investors, government agencies, rating agencies and financial institutions. And of course Congress, at the very top of this chain, gouges itself on the largess from these institutions that lavish significant campaign contributions on individual congressional members. It is all of these players working together that created the “gunslinging process of subprime lending” and as a by-product, mortgage-backed securities..
Bottom line…the riskier the investments…the better the returns and numerous Wall Street institutions and the United States Government through its various agencies all contributed to this mass crisis, a crisis for which the American Public is paying the price…and it is just wrong of the President to blame this mess ont the 25% who were given sub-prime loans…. Because of what these greedy criminals did the 99% are paying for it with everything that we worked our entire lives for while not one of these greedy criminals have been criminally prosecuted to date…and the theft of the wealth and homes of the American People continues unabated to pay the UNSUSTAINABLE DEBTS OF THESE CORRUPT AND INSOLVENT INSTITUIONS.,$700 TRILLION IN UNSUSTAINALBE DEBT was created out of THIN AIR off of the backs of ALL OF US….These criminal institutions have trillions of our wealth derived from ill gotten gains created off the backs of the revenue stream of the working class and other stolen tax payer money they have received….These accounts should be frozen by the U.S. GOVERNMENT and all of our stolen wealth and homes returned……All of the criminals both the politicians and the Wall Street firms who contributed to this manufactured crisis should be thrown in prison for life..
Do we need a Consumer Financial Protection Bureau? Yes we do, but, it is not a “fix” for the disaster that has already occured for millions of Americans… We can not move forward while the massive crimes that have already occured go unpunished and the robbery of the American people goes on unabated..
GMAC has needed to be investigated for years,they have blatently disregarded the law and thier responsibilities for at least 10 yrs. that I am aware of.They grow worse with each passing day along with all the other big lenders.Shut them down and do away with them.Get rid of everyone in the company and do not allow them to work again in this field of employment.Make it stick and make it work.We will all see a definite improvement in our country and in our financial lives.