Hundreds of mortgage lenders may be impacted by admissions from Ally Financial officials who did not do their job. In at least 23 states evictions may have to be halted because Ally Financial serviced their loans improperly.
Jeffrey Stephen at Ally Financial was required to review cases, verify information and to make sure that eviction proceedings were legally justified. Stephen must also sign his docs before a notary. In court Stephen testified that he did none of the above. Fannie Mae and Freddie Mac and hundreds of other mortgage lenders use Ally Financial to process their loans and they all subject to these court admissions and rulings.
Ariana Eunjung Cha
Tue Sept 21, 2010
Subject: Ally Financial Neglect may Save Your Forclosure
Foreclosure mills with massive assignment rooms are being busted… Things are unraveling for the banks.
Ally Financial legal issue with foreclosures may affect other mortgage companies
By Ariana Eunjung Cha
Washington Post Staff Writer
Tuesday, September 21, 2010; 11:20 PM
Some of the nation's largest mortgage companies used a single document processor who said he signed off on foreclosures without having read the paperwork – an admission that may open the door for homeowners across the country to challenge foreclosure proceedings.
The legal predicament compelled Ally Financial, the nation's fourth-largest home lender, to halt evictions of homeowners in 23 states this week. Now Ally officials say hundreds of other companies, including mortgage giants Fannie Mae and Freddie Mac, may also be affected because they use Ally to service their loans.
As head of Ally's foreclosure document processing team, 41-year-old Jeffrey Stephan was required to review cases to make sure the proceedings were legally justified and the information was accurate. He was also required to sign the documents in the presence of a notary.
In a sworn deposition, he testified that he did neither.
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