Ohio AG Tags Ally/GMAC With Civil Suit; Cite 'Stephan' Testimony As Trigger For Probe Into Allegedly Bogus Affidavits Filed In State F'closure Actions

From the Office of the Ohio Attorney General:

• In a lawsuit filed [] against GMAC Mortgage, LLC and its parent, Ally Financial Inc., Ohio Attorney General Richard Cordray accuses the loan servicer and its agents of filing fraudulent affidavits to mislead courts in hundreds of Ohio foreclosures.

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• According to the lawsuit filed [] in Lucas County Common Pleas Court, GMAC and its employees committed fraud on Ohio consumers and Ohio courts by signing and filing hundreds of false affidavits in foreclosure cases. The fraud came to light after a GMAC employee, Jefferey Stephan of Sellersville, Pa., testified in a foreclosure case out of Maine that from 2006 to 2010, he signed thousands of affidavits without verifying the content [go here for additional Jeffrey Stephan testimony in a Florida foreclosure case].

• Through the lawsuit, Cordray is asking the court to grant a preliminary and permanent injunction preventing GMAC/Ally from proceeding to foreclose in any pending Ohio case or allowing the property to be sold. Cordray is also asking for civil penalties of up to $25,000 for every violation of Ohio’s Consumer Sales Practices Act and for consumer restitution.

• As a result of similar reports regarding depositions taken by a JPMorgan Chase and Bank of America employees, Cordray [] also requested that JPMorgan Chase and Bank of America suspend moving toward a judgment, sale, eviction or property transfer involving any foreclosure case with affidavits signed by those employees. Cordray also sent letters to Wells Fargo and Citibank, requesting that the banks meet with his office to discuss foreclosure affidavit procedures.

For the Ohio AG press release, see Attorney General Cordray Files Lawsuit Against GMAC Mortgage.

For the lawsuit and exhibits, see State of Ohio v. GMAC Mortgage, LLC, et al.