Cordray Asks Ohio Judges To Carefully Review GMAC FCs

Posted by Orb Staff on September 29, 2010 No Comments
Categories : Mortgage Servicing

Ohio Attorney General Richard Cordray has sent a letter to judges in the state requesting the state courts to make a special review of all foreclosure cases involving GMAC Mortgage. The letter was sent in response to the discovery of procedural errors in the servicer's document-management processes.

‘It is critical that all [parties] involved in the foreclosure process recognize the dire circumstances of these Ohioans and protect the integrity of the system through careful vigilance,’ Cordray says. ‘It is with this in mind that I request courts throughout the state to monitor these cases, which may be the result of questionable practices."

In the letter, Cordray cites a recent news release from GMAC acknowledging "a potential issue that was raised in a number of existing foreclosures challenging the internal procedure" and several media reports that question the validity of GMAC affidavit procedures that are used in foreclosures.

Cordray joins attorneys general in California, Connecticut and Illinois in ratcheting up the scrutiny of GMAC foreclosure files.

On Monday, a spokesperson with GMAC's parent organization, Ally Financial, declined to comment to MortgageOrb on the actions of the attorneys general.

SOURCE: Office of Ohio Attorney General Richard Cordray

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