Calif., Conn. AGs Order GMAC Mortgage To Freeze Foreclosures

6772_gmac_logo Calif., Conn. AGs Order GMAC Mortgage To Freeze Foreclosures The attorneys general for California and Connecticut have ordered the GMAC Mortgage unit of Ally Financial to freeze all foreclosures in their respective states.

The Washington Post reports that Connecticut Attorney General Richard Blumenthal faulted Ally with using ‘defective foreclosure documents,’ adding that a freeze was necessary ‘to forestall horrendous, illegal harm against homeowners.’ His California counterpart, Edmund G. Brown Jr., has publicly condemned Ally's document review process as being a ‘sham.’ State investigations of Ally's actions are already under way in Illinois, Iowa, North Carolina and Texas.

The announcements by the attorneys general follows reports that Ally was halting foreclosure-based evictions in 23 states where court orders would be required to carry out the eviction. Connecticut was among the 23 states, but California – which accounted for nearly 25% of the $26 billion in residential mortgages that Ally originated in the first half of this year – was not.

SOURCE: Washington Post


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