Ohio Attorney General Files Fraud Suit Against GMAC Mortgage

http://www.ohioattorneygeneral.gov/GMACLawsuit

In a lawsuit filed Wednesday against GMAC Mortgage and its parent, Ally Financial Inc., Ohio Attorney General Richard Cordray accuses the loan servicer and its agents of filing fraudulent affidavits in an attempt to mislead courts in hundreds of Ohio foreclosures.


“We know that as Ohioans were fighting to save their homes, this loan servicer benefited financially from the dire circumstances,” Cordray said. “Instead of stepping up and assisting those at risk of losing their homes, it is clear that GMAC chose to compound the problem through fraudulent and unfair and deceptive practices.”

According to the lawsuit, filed in Lucas County Common Pleas Court, GMAC and its employees committed fraud on Ohio consumers and Ohio courts by signing and filing hundreds of false affidavits in foreclosure cases.

The servicer’s mishandlings of foreclosure documents came to light after a GMAC employee testified in a foreclosure case out of Maine that from 2006 to 2010, he signed thousands of affidavits a month without verifying the content.

On September 20th, GMAC suspended foreclosure actions and REO sales in 23 states to allow the company to undertake a review of what it said was a glitch in its internal procedures. GMAC said it expected any resulting delays on foreclosures already in process to be cleared up within a few weeks, “without serious consequence.”