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Monday, October 11, 2010

Did GMAC Try to Bury Its Foreclosure Smoking Gun? v #MOJO

via Politics | Mother Jones by Andy Kroll on 10/11/10

Is GMAC Mortgage, the company under siege by numerous state attorneys general and members of Congress for its use of dubious foreclosure legal filings, trying to silence the lawyer who exposed the bank's practices? So says Thomas Cox, the Maine attorney whose case is at the center of GMAC's ongoing debacle.

It's been a rough few weeks for GMAC Mortgage, a subsidiary of the bank Ally Financial, which was bailed out by American taxpayers in 2008 to the tune of $16 billion. The first domino fell when Bloomberg reported on September 20 about a leaked internal memo directing mortgage brokers in 23 states to halt foreclosure evictions and sales, adding that the company may "need to take corrective action in connection with some foreclosures." In this case, "corrective action" meant cleaning up a trail of bogus legal paperwork stretching from Maine to Texas.

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