Sep 22, 2010
Ally’s shortcuts may imperil thousands of foreclosures
22 Sep 2010
Posted by Andrew Kantor
So there was this guy, see? He ran Ally Bank’s foreclosure document processing department. There were four things he had to do with foreclosures: 1) Make sure the proceedings were legally justified, 2) make sure all the information was accurate, 3) get a notary to watch him 4) sign the documents.
He only did one of those: Number 4.
Maybe at another time or in another place this would be filed under "Oops," but Ally (neé GMAC) is the fourth-largest mortgage lender in the country. Jeffrey Stephan’s shortcuts, which may have affected 10,000 documents a month for five years (math: 600,000 foreclosure docs), forced Ally to halt evictions in 23 states, and, as the Washington Post explained, "Now it appears hundreds of other companies, including mortgage giants Fannie Mae and Freddie Mac, may also be affected because they use Ally to service their loans."
Click here to read the whole story, and keep an eye out. This one may come around again.