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State investigating GMAC foreclosures

Posted September 28, 2010

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— The Consumer Protection Division of the state Attorney General's Office 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.

"Many North Carolina homeowners are struggling during these tough times to hold on to their homes,” Attorney General Roy Cooper said in a statement Tuesday. “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. 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.

As a result of the allegations, GMAC Mortgage announced last week that it would suspend foreclosure evictions in North Carolina and 22 other states.

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  • ghimmy51 Sep 29, 2010

    I'm sorry whatelseisnew. I'm so indoctrinated with the party interested in blocking anything that's for the people and bothersome to rich corporate friends getting filthy rich from their Chinese workers I missed that.

  • whatelseisnew Sep 29, 2010

    "A consumer protection division is what we would have had nationally as part of the financial reform if Republicans hadn't blocked it."

    Guess you are out of touch, that got passed, and as you will apparently have to learn, it will be just one more agency that protects no one.

  • whatelseisnew Sep 29, 2010

    The Federal and State Governments have interfered so much in the process there is no way that these mortgage companies are being treated fairly. That is right, I am defending the mortgage companies. A loan is a contract and the borrowers have agreed to the terms of that contract. Once the borrowers have failed to meet the terms of that contract, then the lenders can exercise foreclosure. Something the Politicians do not get is the lending of money requires "trust". When lenders can no longer trust that their contracts are worth the paper they are written on, then why would you lend money.

  • ghimmy51 Sep 29, 2010

    A consumer protection division is what we would have had nationally as part of the financial reform if Republicans hadn't blocked it.

  • venitapeyton Sep 28, 2010

    "The move" follows the State of NC, once again, depending on the media to tell them when there's a problem. Like the SBI, NC State/Mrs. Easley, cost overruns at NC DOT, Highway Patrol.....

  • dh1964 Sep 28, 2010

    " This is just one more feather in that hat."

    What kind of hat are you wearing? Isn't more than one feather in your hat a bit gauche?

  • veyor Sep 28, 2010

    I don't want to buy any GM parts, much less their cars. This is just one more feather in that hat.

  • brad1300busa Sep 28, 2010

    What about GMAC Auto loans? I think their review policy is the same.

  • simplyme29 Sep 28, 2010

    to late now............