Blumenthal seeks foreclosure info from company

Keith Loria Sep. 27, 2010, 3:18pm


HARTFORD, Conn. (Legal Newsline) - Connecticut Attorney General Richard Blumenthal announced on Monday that his office is looking into the actions of a mortgage company that allegedly filed defective foreclosure documents.

Blumenthal is demanding that GMAC/Ally Finance, Inc., which allegedly filed these defective foreclosure documents in Connecticut, freeze all foreclosures in the state.

"I am demanding a freeze in all GMAC/Ally foreclosure actions to forestall horrendous, illegal harm against homeowners," Blumenthal said.

"The GMAC/Ally foreclosure steamroller should be stopped so the company can be held accountable. My office has already confirmed that some defective documents were filed in Connecticut."

Blumenthal called the company's alleged failure to not follow basic legal procedure "a potential fraud on the court" and promised to fight to make sure that all banks comply with the legal requirements that protect homeowners from unfair foreclosures.

He also said that his office would look into other banks.

Blumenthal learned of the alleged defective filings from Jeffery Stephan, a GMAC/Ally Financial employee, who recently admitted signing thousands of foreclosure affidavits a month despite never verifying their accuracy or getting proper notarization, which is required by law.

Under state law, a failure to file proper affidavits can be considered a fraud on the court, potentially undermining foreclosures and underlying mortgages.

Blumenthal has asked the company to provide his office with all case names and docket numbers for all Connecticut foreclosure cases in which defective affidavits were filed.

Blumenthal is also seeking a list of all employees or contractors who reviewed and signed Connecticut foreclosure-related documents and their relationship to the bank, and is requesting that the company to outline a plan to make sure the integrity of future affidavits and other documents submitted to the Connecticut Superior Court is certain.

Blumenthal has given GMAC/Ally until Oct. 15 to provide the information. He is running for U.S. Senate.

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