Bankruptcy of Ally Mortgage Unit Raises Questions About Foreclosure Fraud Settlement

By: Monday May 14, 2012 2:10 pm

Ally Bank, formerly known as GMAC Mortgage, the nation’s fifth-largest mortgage servicer, put its mortgage subsidiary Residential Capital into bankruptcy. This is part of a continuing effort on the part of Ally, which is still majority-owned by the US government, to escape its mortgage liabilities. But what does it mean for the foreclosure fraud settlement, to which Ally is a signatory?


GMAC Still Can’t Process Mortgages Properly

By: Monday January 17, 2011 3:30 pm

You’d think after it had become the poster child for robo-signing foreclosure fraud, at a time when it was facing a class action suit arising out of that fraud, and at a time when all servicers had been anxiously awaiting the result of the US Bank v. Ibanez suit in MA, GMAC would be very very careful about the way its purchase of mortgage notes interacted with its servicing department.

You’d be wrong.

10,000 GMAC Foreclosures Stopped in Maryland

By: Sunday January 16, 2011 7:35 am

In a major ruling Friday, a coalition of nonprofit defense lawyers and consumer protection advocates in Maryland successfully got over 10,000 foreclosure cases managed by GMAC Mortgage tossed out, because affidavits in the cases were signed by Jeffrey Stephan, the infamous GMAC “robo-signer” who attested to the authenticity of foreclosure documents without any knowledge about them, as well as signing other false statements.

Oversight and Investigation: “Why Should They Take You Seriously?”

By: Sunday November 21, 2010 8:05 am

Yves Smith has a post laying out one of the most troublesome aspects of the response to the revelation of foreclosure fraud. As she explains, to conduct an “independent review” of its PR-servicing “review” of its own servicing practices, GMAC picked the lawfirm that has been in charge of its national counsel on servicing issues.

Foreclosure Fraud: About that AG “Investigation” and “Settlement”

By: Wednesday November 17, 2010 6:05 am

On Tuesday, Iowa’s Attorney General Tom Miller testified to the Senate Banking Committee it would be months before the combined AG “investigation” came up with a settlement. That’s almost exactly the moment when the Washington Post posted a story reporting the AGs were close to a settlement.

Mortgage and Foreclosure Fraud: Richard Shelby’s Selective Investigation

By: Friday November 12, 2010 12:45 pm

Let me make a rare statement: I agree with just about everything Sen. Richard Shelby (R-AL) said in his call for an investigation of mortgage servicers. But Shelby’s choice of targets sure does bear watching.

FDL Book Salon Welcomes Steven Rattner, Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry

By: Saturday October 30, 2010 1:59 pm

I come to Steven Rattner’s Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry from a very particular perspective. As a Michigander whose husband still works in the auto industry and whose town has benefited from battery subsidies, I’m a grateful direct beneficiary of the work the Obama Administration did to save the auto industry. But that also means I read this book, which might have been subtitled, “Wall Street gapes at Detroit” from the perspective, “Detroit gapes back at Wall Street.”

How Much More Foreclosure Fraud Is Under Seal?

By: Friday October 15, 2010 9:01 am

The NYT has a fascinating story about the $75,000 house that led to the GMAC deposition on robosigning that finally alerted the world to the extent of the fraud behind foreclosures. GMAC requested the judge prevent publication on the internet documentation key to the case. But the judge refused.

As Bank-Imposed Foreclosure Suspensions Continue, Criminal Investigations Offer Leverage for Loan Mod Deal

By: Wednesday October 13, 2010 11:45 am

Ally Financial (the parent company of GMAC Mortgage) expanded their review of their foreclosure processes to all 50 states, the second mortgage servicer to do so after Bank of America; the Obama Administration supports the 40-state investigation by Attorneys General into foreclosure fraud.

Remember the Stress Tests?

By: Tuesday October 12, 2010 4:05 pm

Had the stress tests included a real look at the subject banks’ servicing business, these banks might not have been declared healthy.

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