This is big news. I just got off a conference call with Richard Cordray, the Attorney General for the state of Ohio. He has filed a lawsuit in Lucas County (Toledo) Common Pleas Court against GMAC Mortgage and their parent company Ally Financial, in a suit which names Jeffrey Stephan, the infamous robo-signer who signed off on up to 10,000 foreclosures a month across the country with affidavits, without verifying the information in the foreclosure documents. The lawsuit alleges fraud on the part of GMAC, along with violations of the Ohio Consumer Sales Practices Act, in filing false affidavits to mislead the courts in what they describe as hundreds of Ohio foreclosure cases. And, the Attorney General is treating every single false affidavit filed in an Ohio court as a separate violation, with a fine of up to $25,000, plus additional restitution for the homeowner of an unspecified amount.
That’s because it is a separate violation.
That’s north of $10 billion dollars, potentially, for GMAC/Ally alone. In one state.
And by the way, he’s also calling it what it is: fraud upon the court. That is, a crime.
There is a hidden bomb in here as well:
Now that has potential. If MERS didn’t (and couldn’t) actually have the note….. who did?
Here comes the REMIC question!
One of the best parts of this suit’s filing is that it will make possible discovery, during which we’re likely to find out a whole lot about the origination practices of these firms, and exactly how, and if, they conveyed what was supposed to be conveyed – or if the entire securitization structure is a house of cards.
Go get ’em.