Stocks - World - Finance - Business - Real Estate - Politics - Movies - Music - Sports - Home

Article posted on 10/08/10
Author: Adam Mills

Ohio Files Lawsuit Against GMAC Mortgage

Ohio Attorney General Richard Cordray filed a lawsuit on Thursday against GMAC Mortgage, alleging that the mortgage company used falsified affidavits and other documents to mislead courts in foreclosure proceedings. Cordray said in a statement that GMAC's parent company, Ally Financial, had employed practices that call into question the legitimacy of foreclosures across 22 states, including Ohio.

Attorneys working on behalf of homeowners have reportedly obtained statements from employees of several mortgage lenders, including GMAC, that claim that foreclosure filing s had been improperly verified or notarized. Ohio vs. GMAC Mortgage claims the company violated the state's consumer laws, and seeks as much as $25,000 per violation in punitive damages.

The suit cites a statement from GMAC employee Jeffrey Stephan, who claims to have signed as many as 10,000 foreclosure affidavits per month between 2006 and 2010, most without properly reviewing underlying documents or having them properly notarized as the law requires. Ally Financial released a statement that denied the use of fraudulent or deceitful practices and promised to fix any existing "procedural mistakes" that may have occurred in legal documents.

Stocks - World - Finance - Business - Real Estate - Politics - Movies - Music
Sports Environment - Lifestyle - Science - Technology - Weather - Poli Sci - Food - Home