Ally Financial/GMAC Mortgage fraud exposes thousands of foreclosures to scrutiny

home in foreclosure
home in foreclosure

Normally, the phrase "mortgage fraud" evokes images of borrowers lying on their loan applications or, more recently, foreclosure rescue scams. You don't often hear about the bank perpetrating the fraud. Until now.

Ally Financial's home loan unit, GMAC Mortgage, has a 13-person team dedicated to processing and signing all the foreclosure and eviction paperwork. The head of that team was tasked with reviewing all the files, ensuring that foreclosures were factually and legally justified, reviewing all documents for accuracy and signing them in front of the notary.