Ohio accuses Ally of ‘fraudulent’ foreclosures
By Ben Rooney, staff reporterOctober 6, 2010: 6:28 PM ET
NEW YORK (CNNMoney.com) — Ally Financial and its subsidiary GMAC Mortgage are being sued by the Ohio Attorney General for allegedly submitting fraudulent documents in hundreds of foreclosure cases across the state.
The lawsuit, filed Wednesday in Lucas County, comes after Ally halted foreclosures last week in Ohio and the 22 other U.S. states that require judicial approval of the process. The move came after it was revealed that some bank employees had signed foreclosure affidavits without verifying that the documents were accurate, a process now known as “robo-signing.”
Attorney General Richard Cordray has requested an injunction that would block Ally from moving forward on any pending foreclosure in Ohio or allowing the home to be sold. He is also asking for civil penalties of up to $25,000 for every violation of Ohio law and for consumer restitution.
“We know that as Ohioans were fighting to save their homes, this loan servicer benefited financially from the dire circumstances,” Cordray said in a statement. “Instead of stepping up and assisting those at risk of losing their homes, it is clear that GMAC chose to compound the problem through fraudulent and unfair and deceptive practices.”
Ally maintains that its actions were not fraudulent and said it would fight the charges.
“There was nothing fraudulent or deceitful about GMAC Mortgage’s practices,” James Olecki, a company spokesman told CNNMoney.com. “If procedural mistakes were made in the completion of certain legal documents, GMAC Mortgage reacted proactively to the situation and immediately undertook to remedy the situation.”
He said foreclosures are typically not filed until the customers are six to 12 months delinquent, “so the fact of default and the right to foreclose are not in dispute.”
Cordray also called on JPMorgan (JPM, Fortune 500) and Bank of America (BAC, Fortune 500) to suspend foreclosures that may have involved robo-signed documents. He also sent letters to Wells Fargo (WFC, Fortune 500) and Citibank (C, Fortune 500), asking them to meet with his office to discuss foreclosure affidavit procedures.
However, JPMorgan and Bank of America both announced plans to halt foreclosures in the so-called judicial states, pending an internal review of the banks’ processes. 
Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud |
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Where is the FLORIDA AG BILL McCLOUM????
WHY doesn’t he follow OHIO’s Lead???? What he waiting for?? Yea, he filed a so-called investigation, but it just laying there like a dead dog.
Florida courts are among the most corrupt in the Nation! Come On Bill
Mr. Cuccinelli, The AG in VA, rather spend his time fighting to get rid of health reform for the benefit of BIG PHARMA AND BIG MED, but he could care less about the homeowners in Va who are being robbed blind with fake and inaccurate affidavits, appointments and substitution of trustees, etc.
What a waste of VA tax dollars.
And the DC government , they out going Mayor and the New Mayor Elect, the City council have not even commented on the issue, even though the city is being starved of tax dollars and people are being displaced.
I figure that is OK to cheat and Steal, Let us rob a bank, since it is OK to cheat and Steal.
two years ago when i filed my chapter 11, i wrote to this gmac mortgage ,LLC in pennsylvania about the fraudulent assignment of deed to then president Blackburn, but no reply. talked to Bill Hultman from MERS, he said it was legitimate, i raised this question in my opposition to motion to lift the stay, the bk judge said it was legitimate assignment of deed from mers. i wrote to my congressman and senator about the fraudulent documents in late 2008 no response. i wrote a letter to department of justice on may 2010 listing all the entities that i believed filed fraudulent documents in the court including the law firms and the “substituted trustee” gmac , bank of america, jp morgan chase who took over EMC wells fargo and other more. now they are telling us that it was just a procedural mistake, NO WAY JOSE. IT WAS AN INTENTIONAL TO COMMIT FRAUD BY CONSPIRING WITH MERS, LOAN SERVICER, LAW FIRMS, DEBT COLLECTORS AND OTHER THIRD PARTIES SUCH AS TITLE COMPANIES, THE AUCTIONEERS AND REAL ESTATES BROKERS AND INVESTORS WHO KNEW THAT THE DEFAULTED NOTES THEY ARE BUYING ARE FRAUD. HANG THESE PEOPLE. CALLING FBI.
Mr. OLAKI, you are full %^&*()(
until you give each borrower a full and true accounting of the loan transaction from its inception to today, you cannot move forward. And by the way do not forget to include all the fees and commissions all the middle men made in the process.
Until then, those affidavits continue to be a fraud and an attempt to conceal the truth.
Now get ready for what is coming nationwide.
i feel so disappointed at all those spine less AG’s across the nation that have ignored the issue and chosen to pass under water the whole thing.
Your silence and lack of action borders in complicit procuration of the demise of our economy and our country as we know it.
it may also border on treason of the highest level.
So Deutchbank has more rights and weight than a US citizen, that feels great!