by Brian Mahany
Ask any court clerk and you will hear dozens of tales of missing documents, forgeries and even lenders foreclosing on homes when the borrower never missed a payment. The banks, however, are a bit more reluctant to come clean. Recently Ally FInancial and its servicing unit, GMAC Mortgage, identified thousands of problem loans. The problems were uncovered in a review performed by Price Waterhouse. According to published reports, the document was released by the Federal Reserve.
The report shows that among the problems, Ally may have improperly denied some 50,000 homeowners a HAMP mortgage modification. The HAMP program (the Home Affordable Mortgage Program started under the Obama administration) is a federal program administered by lenders designed to help borrowers remain in their home. The report says the bank did not handle “the HAMP loss mitigation efforts appropriately.”
The report also says that apparently some 9500 homeowners had modifications that were approved but never executed. If that sounds far-fetched, it isn’t. We are aware of one couple who received 3 different HAMP approval letters only to have the bank each time not accept the new reduced payments!
In addition, the audit claims that Ally hired a foreclosure mill law firm that was subsequently delisted. This affects some 30,000 homeowners. Although the name of the firm was blacked out on the letter released by the government, we know that most of these law firms were delisted for forging documents or robo signing violations.
The only reason they problems are coming to light is because the $25 billion lawsuit settlement between the large banks and 49 states requires an independent review of bank procedures. If the news from Ally is any indication, the problems in the industry remain huge.
The law firm of Mahany & Ertl sues lenders that have wrongfully foreclosed on homeowners or improperly denied a HAMP modification. Or business model is different from most lawyers – we believe the only way to get a bank’s attention is by taking them to court. In many cases, bankers don’t want to air their laundry in public. Unlike foreclosure defense cases which are usually decided by a judge, lawsuits against the banks for monetary damages are often heard by juries. With so many foreclosure horror stories today, banks do not like the thought of explaining their actions to a jury in the victim’s home town.
If you believe you have a case against a mortgage lender, bank or servicer, give us a call. All inquiries are protected by the attorney client privilege and are kept in confidence. For more information, contact attorney Anthony Dietz at . The author, attorney Brian Mahany, can also be reached at or by telephone at (direct).
Mahany & Ertl – America’s Fraud Lawyers, Proudly Giving Homeowners A Voice. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota. Services available in many jurisdictions.