Woke up early this morning and while watching the news the word "foreclosure" perked my interest. The report was that Ally Financial, GMAC's mortgage unit was forced to suspend evictions in 23 states last week when it was discovered that ONE of its processors signed off on SWORN AFFIDAVITS without ever reviewing the loan documents or even signing the LEGAL affidavits in the presence of a notary.
The allegations against GMAC Mortgage are that they evicted homeowners without veri
fying borrowers actually defaulted or even whether the company had the legal standing to seize the homes. It was reported that Ally's mortgage executive signed off on 10,000 files per month. Guess what? Now that this was discovered the executive is still working for the company!
It was reported that a spokesman for the U.S. Treasury Department, which owns 56% of Ally, declined to comment. Didn't the Treasury Department spend over $17 billion of the bailout money on Ally under the "Troubled Asset Relief Program"? It is reported that in December 2009, the head of TARP, Herbert Allison, told Congress the government had no intention of getting involved in the daily management of the companies it bailed out. That is obvious and Ally reportedly has NOT repaid any of the TARP money.
In my opinion, this is our current administration's "Bailout Culture". Government programs that dole out the money to companies like Ally are not being sufficiently supervised to actually HELP the United States citizens. It appears to this observer that millions are instead being victimized by them and no one seems to care. Foreclosing on families and evicting men, women and children without verifying all the information in a case... well, that is simply outrageous.
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