Law Suits & Courts

GMAC Finds "No Evidence" of Improper Foreclosures, Expands Reviews

Posted on Wednesday, October 13, 2010

GMAC Mortgage says although reviews of foreclosure affidavits involving homes in 23 judicial states are ongoing, the company “has found no evidence to date of any inappropriate foreclosures.”
GMAC suspended foreclosure actions and REO sales in states where courts oversee homeowner evictions and property repossessions on September 20th, after evidence surfaced that members of the company’s servicing staff were signing off on thousands of foreclosures a month without checking the paperwork for accuracy or following proper procedures as mandated by state laws.
The company froze all foreclosure activities in order to review case files from those states. GMAC said at that time it expected any foreclosure delays resulting from the temporary suspension “to be resolved within the next few weeks and certainly before year end, without serious consequence.”
In a statement issued Tuesday, GMAC said the review and remediation efforts related to cases in the 23 judicial states
has been underway for approximately two months and will continue.
“As each of those files is reviewed, and remediated when needed, the foreclosure process resumes,” GMAC said.
The company also announced that it has engaged several legal and accounting firms to conduct independent reviews of its foreclosure procedures in each of the 50 states.
In addition, the company has tasked what it called a “specialized team” to provide second-look evaluations of all foreclosure sale files nationwide. According to GMAC, this team is responsible for ensuring that: home preservation procedures have been fully followed; the timing and substance of the foreclosure is appropriate; and the file itself is in good order and complies with all laws and requirements of the state of jurisdiction.
“Foreclosure is a very serious matter and only implemented when all other home preservation options have been fully exhausted. We are taking these additional steps to restore confidence in the process, which is critical for the stability of the home and mortgage industry,” GMAC said in its corporate statement.
GMAC’s announcement comes one day before a coalition of state attorneys general from as many as 40 states are expected to launch a joint investigation into the company’s foreclosure processes.
Other firms that have announced voluntary foreclosure suspensions – including JPMorgan Chase, Bank of America, PNC Financial, and Litton Loan Servicing – are also expected to be targeted by the states’ coordinated investigation.
DS News Carrie Bay


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