State investigating GMAC foreclosures
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.Posted — Updated
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.
Copyright 2023 by Capitol Broadcasting Company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.