GMAC’s foreclosure foul-up puts predatory lenders on hot seat
Posted on September 27, 2010 by Monique Morris
Cross-posted from TheGrio.Com
This week, it was revealed that critical errors made by Jeffrey Stephan, the leader of an Ally Financial foreclosure document team responsible for approving approximately 10,000 foreclosures a month & mdash; may have caused people in as many as 23 states to be "illegally driven" from their homes. Ally, formerly known as GMAC Mortgage LLC, is the nation's fourth-largest home lender.
Florida Attorney General Bill McCollum is investigating three law firms for allegedly providing fraudulent affidavits in foreclosure cases, which allowed for the lender to proceed with a repossession without a trial. Is this the "usual practice" that Ally proudly states it will continue?
Despite earlier reports that Ally was going to suspend foreclosures until the investigation is complete, the company issued a statement on Monday that read, "in fact, all new residential foreclosures are continuing in the ordinary course of business with no interruption in our usual practice."
In a sworn deposition, Mr. Stephan testified that he repeatedly did not perform two functions that are critical to ensuring the integrity of the process: 1) conducting a review of cases to make sure the cases were legally justified, and 2) signing documents in the presence of a notary.