California Real Estate Fraud Report

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Lender GMAC Ordered to Comply or Stop Foreclosures by Attorney General Brown

Ally Financial, Inc., previously known as GMAC, has been ordered by California Attorney General Edmund G. Brown Jr. to show immediately that it is complying with state foreclosure laws or to cease and desist from foreclosing on California homeowners.

“I’m taking this action to protect California homeowners facing the tragedy of foreclosure,” Brown said. “They are clearly in jeopardy since an Ally Financial official admitted his review of thousands of critical foreclosure documents was really a sham.”

“Prior to resuming foreclosures here, the company must prove that it’s following the letter of the law,” Brown added.

Under California law, lenders may not record record notices of default on mortgages made between January 1, 2003 and December 31, 2007, unless, with limited exceptions, the lender “contacts or tries diligently to contact the borrower to determine eligibility for a loan modification.” According the Attorney General Brown’s press release, “a notice of default must include a declaration of compliance with California law.”

The head of Ally Financial’s document processing team has admitted that he “routinely approved and signed foreclosure documents without confirming they were accurate and legally sufficient”, which his is required by law to do.

Ally Financial, aka GMAC is the fourth large home lending institution in the United States.

Read the Attorney General’s press release here. Click here to read the Attorney General’s letter to Steven Abreu, the head of Ally Financial’s Mortgage Operations.

© Copyright 2007-2018 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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