GMAC Mortgage, a national provider of mortgages and home refinancing, will cease buying new mortgage loans in Massachusetts that were made by other lenders and brokers, reports Reuters. GMAC will continue to make those loans that come through its direct lending practice.
“GMAC Mortgage has taken this action because recent developments have led mortgage lending in Massachusetts to no longer be viable,” the company said in a statement.
The decision to pull from some lending in Massachusetts comes after the state's attorney general filed a lawsuit against five large banks, among which GMAC is included, accusing them of deceptive foreclosure practices, such as using robo-signers and false documents, reports Reuters. Experts analyzing GMAC's move believe that GMAC's decision to stop mortgage loans in Massachusetts is a form of retaliation against the government, according to Naked Capitalism.
Foreclosure fraud has been a significant problem all across America. Much of the crisis revolves around the way that the foreclosure process is being handled, from banks not being able to provide proper documentation of ownership, to claims that documents have been "notarized" but not actually signed in the presence of notaries, to the act of robo-signing.
A series of investigations into the robo-signing controversy revealed that lenders had filed misdated and forged paperwork in foreclosures, leading to default notices, auctions, and bank repossessions at a vast scale.
Mortgage fraud and foreclosure fraud are a reality. One of the best ways to gain some protection is make sure that you include a qualified real estate attorney in all your mortgage proceedings.
- Find a Boston Real Estate attorney (FindLaw)
- GMAC, Massachusetts Trade Salvos in Mortgage Fight (Wall Street Journal)
- Georgia the State with Most Foreclosures on the East Coast (FindLaw's Atlanta Bankruptcy News Blog)