After spending much of last week explaining that a procedural error caused a temporary suspension of evictions and post-foreclosure closings in 23 states, GMAC Mortgage on Friday provided an update on its internal mortgage servicing process.
The error in question related to defects in the affidavits that are used to support foreclosure proceedings in certain states. In some instances, affidavits were executed without direct personal knowledge of all the information stated in the affidavit. Additionally, GMAC said, there were cases in which company personnel signed affidavits without a notary public present, as required by state law in some areas.
Despite the defects, GMAC says the affidavits were factually accurate and that an internal review has not revealed evidence of any misstatements about the details contained in the affidavits, such as the loan balance or delinquency status.
‘We believe the defects occurred in some, but not all, foreclosures in the 23 impacted states,’ the company said in a statement Friday. ‘The problem was identified and then addressed a few months ago, and the execution process has been corrected.’
GMAC employees responsible for signing documents have undergone additional education and training, and the company has issued ‘a more robust policy’ on the affidavit process requirements. GMAC has also ‘substantially increased’ the number of employees performing the process.
‘While we are exercising an abundance of caution in the review process, we are confident that the processing errors did not result in any inappropriate foreclosures,’ GMAC said in the statement. ‘If, upon further review, we discover any harm resulting from these procedural errors, we will address and rectify it promptly.’
Also on Friday, California Attorney General Edmund G. Brown Jr. released a statement saying his office had directed GMAC to prove that it is complying with state law or, if it cannot, to cease and desist from foreclosing on homes in the state.
According to a report in The New York Times, attorneys general in North Carolina and Iowa are beginning investigations of the lender.
GMAC spokesperson Jim Olecki declined to comment on Brown's statement or on the reported investigations.