Mortage Company retaliates against MA for investigating wrongful foreclosures

Economy • December 2011 • Views: 1,799

Mortage Lender GMAC Retaliates Against Massachusetts Lawsuit By Ending Most Lending In The State

GMAC Mortgage, the mortgage lender of Ally Financial Inc., is exiting the vast majority of its lending in Massachusetts a day after the state sued it over its foreclosure practices. The nation’s fifth-largest mortgage originator said it ‘has taken this action because recent developments have led mortgage lending in Massachusetts to no longer be viable,’ ratcheting up the high-stakes mortgage fight there.

By pulling business from Massachusetts after being sued for illegal practices such as wrongful foreclosure — which is, in essence, stealing people’s homes — GMAC is basically practicing a capital strike

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7 comments

lostlakehiker Sat, Dec 3, 2011 10:40:41am

GMAC has looked at the rules for mortgage foreclosure and they've evidently concluded that the numbers don't work. Laws on foreclosure can get so protective of the right of the borrower to hang on even without keeping up with payments, that the lender has little effective recourse when borrowers default.

jaunte Sat, Dec 3, 2011 12:44:00pm

"Coakley points to a Milford home, among others, in her lawsuit.

It contends that a Milford resident borrowed $253,600 from Sallie Mae Home Loans for a home at 22 DeLuca Road, and that before Jan. 24, 2008, Citibank filed a foreclosure complaint, claiming it was "the owner (or assignee) and holder of a mortgage with statutory power of sale given by (the Milford borrower)."

The suit says Citibank forced the property to be sold at auction on March 25, 2008, even though Citibank did not become the holder of the mortgage until May 21, 2008."
[Link: www.milforddailynews.com...]

Romantic Heretic Sat, Dec 3, 2011 2:05:01pm

Massachusetts is discovering the truth about the modern world.

Small sovereignties have no control over economics inside their borders. Businesses will simply stop doing business there if the government gets in their way.

"Nationalism is second prize in the pursuit of power today," says my favourite writer. I think he's correct.

cinesimon Sat, Dec 3, 2011 4:20:37pm

lostlahiker that is such bizarre rubbish.
It's just pathetic how gullible people like you are to the nonsense PR some corporations spew.
If your laughable hysteria were true, there would be no lending anywhere.

cinesimon Sat, Dec 3, 2011 4:22:48pm

This crap about 'government getting in the way' of legitimate businesses, is in cases like this, nothing less than bizarre.
These people are crooks. Pure and simple. It is the government's job to get in their way.

Off Colfax Sat, Dec 3, 2011 5:46:26pm

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Dark_Falcon Sat, Dec 3, 2011 8:09:49pm

re: #4 cinesimon

It's not bullshit. My best friend used to work for a mortgage lender, and he is also a landlord. The hoops a mortgage company has to go through in the Chicago area are incredible.

I'd also ask "What are the rules that GMAC is being required to comply with?" Because that seems a key question.

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