GMAC Gets Back in the Foreclosure Game

GMAC Mortgage, a subsidiary of mainly government-owned Ally Financial, announced today that it has resumed foreclosure proceedings in 23 states, ending its nationwide moratorium on home repossessions. The Detroit News reports:

“As we review the affected files in the 23 judicial states and take any needed remediation, the foreclosure process continues,” said Gina Proia, a spokeswoman for GMAC Mortgage.”

Just as it had joined Bank of America as one of the only firms to halt foreclosures in all 50 states, GMAC now joins BofA as one of the first companies to restart its mortgage operations. Bank of America announced Monday that it was kicking its foreclosure procedures back into gear and today expressed confidence in its paperwork.

GMAC’s announcement comes as major banks are working to assuage investor concerns that poorly prepared mortgage and foreclosure paperwork could come back to haunt them in the form of investor putbacks, homeowner lawsuits and regulatory action. Attorneys general in all 50 states have announced a joint investigation into lenders’ practices after depositions by lender employees revealed fraudulent processing of foreclosure documents. On Friday, reports emerged that the SEC has started its own inquiry into the matter.

mtaylor [at] | @mbrookstaylor

GMAC Gets Back in the Foreclosure Game