Ally, GMAC foreclosures based on faulty documents, more states say

Connecticut, Ohio and North Carolina have joined the ranks of states investigating foreclosures by Ally Financial's GMAC Mortgage unit after an employee said in court documents he rubber-stamped thousands of foreclosure affidavits.

Connecticut Attorney Richard Blumenthal announced on Monday that his office is investigating defective foreclosure documents filed by GMAC in his state and called on the company to freeze foreclosures there.