Investigation finds GMAC falsified paperwork to pursue foreclosure

New York /
Jul.July 27, 2011 06:44 PM

Nationwide mortgage servicer GMAC, which was the beneficiary of a taxpayer bailout in 2008, submitted false documentation to foreclose on homeowners for whom it lacked original lending paperwork, according to information obtained by ProPublica.

In one case, GMAC wanted to foreclose on a New York City homeowner, but couldn’t sign documents in the name of the original lender as is customary because the company, Ameriquest, had gone out of business. So GMAC allegedly filed a document dated July 2010, three years after Ameriquest folded, that said it had been assigned the loan in 2005. It was signed by a GMAC executive claiming to be a “Limited Signing Officer” for Ameriquest, the paperwork says.

“This assignment of mortgage has all of the markings of GMAC finding that it lacked a needed mortgage assignment in order to foreclose, and [was] just making it up,” said Thomas Cox, a Maine foreclosure defense attorney. Another attorney called it outright fraud. But GMAC continues to pursue foreclosure in the New York case.

This is different from the practice known as robo-signing where lenders claim a more intimate knowledge of the underlying mortgage than they actually have. The ProPublica investigation shows GMAC was producing false documents and likely submitted hundreds of them to government agencies across the country. [ProPublica]


Related Articles

arrow_forward_ios
Paul Manafort and Manhattan district attorney Cyrus Vance, Jr. (Getty)
Manafort mortgage-fraud case dismissed, again
Manafort mortgage-fraud case dismissed, again
Letitia James (Credit: Timothy A. Clary/AFP via Getty Images, iStock, Pixabay)
Real estate was among top consumer gripes in 2019
Real estate was among top consumer gripes in 2019
From left: 1578 Union Street in Brooklyn, Daniel Melamed (inset) and Eric Schneiderman (Credit: Google Maps, Getty Images, Facebook)
Overzealous investigators went too far in pursuit of Brooklyn landlord, appellate court rules
Overzealous investigators went too far in pursuit of Brooklyn landlord, appellate court rules
Paul Manafort and Manhattan District Attorney Cyrus Vance Jr. (Credit: Getty Images)
Judge tosses mortgage-fraud case against Manafort
Judge tosses mortgage-fraud case against Manafort
Florida man sentenced in $3.5M mortgage fraud scheme that targeted Orthodox Jewish community
Florida man sentenced in $3.5M mortgage fraud scheme that targeted Orthodox Jewish community
Florida man sentenced in $3.5M mortgage fraud scheme that targeted Orthodox Jewish community
Penny Bradley (Credit: Getty Images)
Upper East Side developer funded “lavish lifestyle” through mortgage fraud: Manhattan district attorney
Upper East Side developer funded “lavish lifestyle” through mortgage fraud: Manhattan district attorney
Morgan Management's Robert C. Morgan and the Avon Commons apartment complex in Avon, N.Y. (Credit: Rochester Institute of Technology)
Lenders poised to take over apartment empire amid massive mortgage fraud probe
Lenders poised to take over apartment empire amid massive mortgage fraud probe
How a New York mortgage broker scammed large banks and Fannie and Freddie
How a New York mortgage broker scammed large banks and Fannie and Freddie
How a New York mortgage broker scammed large banks and Fannie and Freddie
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...