Illinois Attorney General Madigan Demands Meeting with Ally’s GMAC Unit at Center of Foreclosure Fraud Controversy

ATTORNEY GENERAL MADIGAN DEMANDS MEETING WITH
MORTGAGE LENDER AT CENTER OF FORECLOSURE CONTROVERSY

GMAC Suspected of Submitting False Documents in Foreclosure Cases

Chicago — Attorney General Lisa Madigan today issued a letter to the mortgage lender Ally (formerly GMAC) demanding a meeting to address concerns that the company has violated the state’s Consumer Fraud Act in its pursuit of Illinois homeowners in foreclosure. Madigan’s letter responds to reports raising serious questions about the accuracy of documents the lender files in foreclosure lawsuits.

An Ally employee testified in a Florida court case that he routinely signed affidavits for foreclosure lawsuits and submitted them to Ally’s attorneys without reviewing the homeowners’ loan documents. These affidavits were then filed with the court as evidence of Ally’s right to foreclose on the homes. The employee testified that he signed at least 10,000 affidavits a month without reviewing the underlying paperwork, and thus had no way of knowing whether the information in the affidavits was actually true.

“Families’ homes are at stake here,” Madigan said. “If I determine that Ally is rubber-stamping affidavits and filing them with our courts as evidence, I will take appropriate action. The law demands that lenders prove their case in foreclosure actions, and Illinois homeowners demand the same.”

Following these revelations, Ally announced this week that it is suspending foreclosure lawsuits in 23 states, including Illinois.

Madigan also requested that Ally immediately provide her office with details on the impact of Ally’s conduct on Illinois homeowners, including the number of Illinois homeowners affected by the suspension of foreclosures; the names of the Illinois law firms that Ally retains to pursue foreclosure actions; information about how these firms will implement and monitor the suspension of foreclosure lawsuits in Illinois; and the length of the suspension.

GMAC ranked fourth among U.S. home mortgage lenders in the first six months of this year, according to Inside Mortgage Finance, an industry newsletter.

Source: Illinois Attorney General

You can also check out the letter sent to Ally/GMAC from the AG below…

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4closureFraud.org

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Illinois Attorney General Demand Letter to Ally/GMAC

Comments
3 Responses to “Illinois Attorney General Madigan Demands Meeting with Ally’s GMAC Unit at Center of Foreclosure Fraud Controversy”
  1. yvonne says:

    It would be great if all the other states do the same…this is so wrong…and stimulus money that should be benefiting Americans are being channelled to other countries where the itnerest rates to the homeowners in third world countries start at 14% and up…these bankers that received bailout funds are having a hay day…they never thought the US government and leadership would agree to such a foolhardy decision…

    I noted that Bush started it at the exit time of his service but still in position to make a decision and did the first stimulus, edgedon by Polosi, etc, for the insurance company….another big cover as all are owned by the same people…imagine…what instant return on their investments with all that stumulus funds..

  2. Michael says:

    Issue an arrest warrant then an extradition warrant, for him, his top managers, and his Board of Directors (oops! that’s the US Treasury via Geither … well, whatever … since he wanted to act like a private businessperson treat him like one). That’ll get their attention.

    I love how the only apparent reaction of the Obama “Hope & Change” Administration is a $50 billion bailout of even more banks on Friday. Yes, we know Bush started it … but Obama (who I was an early and loud supporter of — was being the key term) didn’t change a thing, did he? Let’s borrow money, that US children will have to pay back, to shield incompetent, greedy, reckless bankers from the downside risk of their poor decision-making — allow bankers to shirk their responsibilities — while making those same children homeless.

    Speak up, Mr. President.

  3. WOW! Now that’s a POWERFUL DEMAND LETTER!

    A nuclear impact in a few pointed words!

    WOW!

    Lisa

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