Bank of America and Chase implicated in foreclosure 'robo-signing' scandal

tall stack of paperwork
tall stack of paperwork

Just when it looked like the Ally Financial/GMAC Mortgage robo-signing drama couldn't get any more, well, dramatic -- it did. Last week, the fourth-largest mortgage lender in America revealed that the foreclosure documents for potentially all its foreclosures over the last five years had simply not been read, because the staffer tasked with signing them had been assigned the inhuman job of "reading" and signing over 10,000 documents per month.

More than 50,000 foreclosures, evictions and resales of foreclosed homes on home loans held or serviced by GMAC Mortgage were frozen across 23 states; within the week, the California attorney general had asked GMAC to stop foreclosures in the nation's largest state until the company could prove it was complying with state foreclosure laws, Connecticut's attorney general had requested a court order halting all banks from foreclosing on homes there for 60 days and the attorneys general of Ohio and Florida had initiated investigations into GMAC foreclosures.