Feds to Ally Bank/GMAC Mortgage: Pay Up for the Financial Crimes Against the People. The Treasury Department Owns Ally Bank/ GMAC Mortgage. So, Who Are They Fooling?
By Aaron Wider
Massapequa NY / PRBuzz / July 4, 2011 - - Federal regulators have ordered Midvale-based Ally Bank to fix significant deficiencies in its foreclosure practices covering a two-year period in which among other things it submitted bogus legal documents for foreclosures, bankruptcies and other court actions.
The order from the Federal Reserve and the Federal Deposit Insurance Corp. alleges employees of Ally, two sister companies and their parent company, Ally Financial, signed foreclosure documents without reading them -- a possibly illegal practice known as "robo-signing."
The Fed and the FDIC issued the order in April. It was made public Friday. The consent order has put aside twenty billion dollars for those who have been defrauded by Ally Bank, GMAC Mortgage, RFC, Homecomings, and Dietech between December 2009 and December 2010.New Jersey State Supreme Court Chief Justice Stuart Rabner entered an order To Show Cause "In The Matter of Residential Mortgage Foreclosure Pleadings and Document Irregularities" in Civil Action No. F-059553-10, Superior Court of New Jersey, Chancery Division, General Equity Part, Mercer County on December 20, 2010. First on the list was Ally Financial, formerly known as GMAC. Ally/GMAC is the employer of Jeffrey Stephan who was exposed as one of many "robo-signers" - a phrase indicating that an employee signed 10 thousand documents monthly used in foreclosure cases with no idea of the truth of the matters asserted in the documents, and more often than not, without even having read what was signed.
Stephan signed thousands of Affidavits, but he signed tens of thousands of Mortgage Assignments - the documents used by mortgage-backed trusts to show that the trusts acquired the mortgages at issue and have the right to foreclose.
Stephan signed these Mortgage Assignments for many different mortgage-backed trusts. Over 154 RALI (Residential Accredit Loans, Inc.) Trusts relied almost exclusively on Mortgage Assignments signed by Stephan. Over 44 RAMP (Residential Asset Mortgage Products) Trusts also used Assignments churned out by Stephan. At least 20 RASC (Residential Asset Securities Corp.) Trusts used Stephan assignments almost exclusively in foreclosures. At least 40 other mortgage-backed trusts, including certain Aames Mortgage Investment Trusts, certain Bear Stearns Trusts and certain Harborview Trusts all relied on Ally/GMAC's Stephan for proof of their right to foreclose which can all be located on the Edgar Data base of the Securities Exchange Commission.
These trusts needed the Stephan-made assignments because the trusts' depositors, sponsors, trustees and document custodians failed to obtain the critical documents, including notes and assignments, at the inception of the trust - despite promises to investors and regulators that these documents had been obtained and were being safeguarded. These trusts needed the Stephan-made assignments because the trusts' depositors, sponsors, trustees and document custodians failed to obtain the critical documents, including notes and assignments, at the inception of the trust - despite promises to investors and regulators that these documents had been obtained and were being safeguarded.
In Florida, Stephan's name appears on thousands of Mortgage Assignments, most often on documents prepared by the Law Offices of David Stern, who is under investigation by the Florida Attorney General. In almost every case, Stephan signed as a Vice President of Mortgage Electronic Registration Systems.
According to the Stephan documents, the trusts almost always acquired these mortgages AFTER they were already in default and often AFTER foreclosure proceedings had been initiated.
Many different banks, in their capacity as Trustees for mortgage-backed trusts, used Stephan Assignments, but Stephan documents were most often used by Deutsche Bank Trust Company Americas, Bank of NY Mellon and U.S. Bank.
Assuming that each trust has mortgage loans with a face value of one billion dollars - and that over 200 trusts are involved, the amount in controversy is staggering.
Also disturbing is the number of Assignments on Stephan/Stern documents where the assignee trust is unidentified. The Stephan/Stern team repeatedly prepared and filed Assignments where only the Trustees - and not the trusts themselves - were identified as the new owners of the mortgages. "U.S. Bank as Trustee" and "Deutsche Bank Trust Company Americas as Trustee" are the new owners of thousands of mortgages.
Stephan often wrongly stated his own job title, the date the assignment to the trusts took place, and the identity of the trusts. Stephan's conduct - and the documents he produced - will not stand up to the most superficial examination. Chief Justice Rabner seems determined to dig much deeper.
The other five companies named by Chief Justice Rabner have the very same problems, having produced hundreds of thousands of flawed loan documents for mortgage-backed trusts, signed by individuals with very limited knowledge or authority. Their role was to sign their names without questioning or understanding what they signed.
According to Chief Justice Rabner, the next step may be the Appointment of a Special Master "to inquire into and report to the court on the extent of irregularities concerning affidavits, certifications, assignments and other documents from time to time filed with the court in residential mortgage foreclosure actions..." Past and present business practices would be examined and the Master could also consider whether sanctions should be imposed...and a suggested formula to determine an appropriate sanction."
By his Order, Chief Justice Rabner gave hope to hundreds of thousands of victims of fraud by securities companies, banks, mortgage companies and mortgage servicing companies.
The employees "represented that the assertions in the affidavit(s) were made on personal knowledge or based on a review ... of the relevant books and records, when in many cases, they were not based on such knowledge or review," according to the order.
The infractions allegedly took place from January 2009 to the end of last year. During that period, Ally Financial, Ally Bank, Residential capital, GMAC Mortgage and a number of affiliated mortgage servicing companies completed almost 90,000 foreclosures. 90,000 forecloses at $150,000 equals $1,350,000,000. That's a Trillion 350 billion dollars of fraud yet there are 50 state banking departments, and 6 Federal Agencies that regulate these banks and no one has been prosecuted. The sleeping giant turned its back on law and allowed un-addressed fraud to become what it is. Since the authorities collectively turned their backs on the law when the legislative body wrote them there is only one conclusion. There were all on the payroll, lazy or corrupt. You the citizens make that determination.
Since fraud continues to go unpunished it is okay for you to exercise your right to challenge your mortgage and note, to force the banks to adhere to the law. Write a certified letter to your mortgage servicer that represents the investor i.e., FNMA, FHLMC, or a REMIC's to produce the original note, produce proof of receipt of the note, produce proof the note was delivered to the Trustee prior to the Pool Servicing Agreement's cutoff date and the assignment of the security instrument was transferred simultaneously. Nine times in ten you will walk away with no mortgage on your property. If everyone does this at the same time it will collapse the corruption and force the system to prosecute those who are not in abeyance to our laws.
Instead of stepping up and assisting those at risk of losing their homes, it is clear that GMAC Mortgage chose to compound the problem through fraudulent, unfair and deceptive practices.
Outrageously Gina Proia, an Ally Bank spokesperson has lied repeatedly to the press and stated that there is nothing fraudulent or deceitful about the company practices and yet hundreds of thousands of fraudulent affidavits, mortgage assignments and note endorsements have flooded the courts and no one has been prosecuted. Another successful fraud that the authorities are unaware of is GMAC Mortgage assumes the names of companies that have gone out of business. They fraudulently endorse mortgage notes, mortgage assignments as officers in that companies name, fraudulently record these assignments and fraudulently foreclose. There is a remedy. The individual state legislative bodies need to pass a law reflecting that a power of attorney needs to be accompanied by the corporate resolution of trust of the correspondent that sold the loan reflecting who is authorized to sign. Anything less is a crime against the people.
Other than to say Ally Financial companies are still foreclosing on mortgages "when appropriate," Proia declined to elaborate. She said the company had expressed its reaction to the order in a statement issued in April.
In the statement, Ally Financial said it "deeply regrets the error in processing certain affidavits and has acted with urgency and rigor in addressing and remediating the issue." The company said it had not found any instance where a homeowner lost a property without being in significant default an outright lie.
Ally Financial, formally known as GMAC LLC, became a bank holding company after the federal government seized control of the former auto and mortgage finance business in late 2008. The change enabled the Detroit-based lender to qualify for a federal government bailout.
Its Utah-based banking arm, GMAC Bank, became Ally Bank in 2009. The name change was widely interpreted as an effort to distance Ally Bank from troubled GMAC, one of 10 financial firms ordered by the government during the financial crisis to raise more capital.
In the April order, the Fed and FDIC also alleged Ally and the subsidiaries filed affidavits and other mortgage-related documents in a number of state courts that weren't property notarized.
Lawyers for the companies allegedly made arguments in court during foreclosure and bankruptcy proceedings without always confirming that documents relating to homeownership were in order. The companies also initiated no judicial foreclosures with faulty documents, according to regulators.
Regardless of the lies told by the bureaucratic system and Ally Bank, I would like to personally thank the management of GMAC Mortgage, RFC, and Homecomings for the opportunity of making home ownership for free realty. Old money and new money have become one!
Media Contact: Aaron Wider
Name: Aaron Wider
Business name: TYENFO
Feds to Ally Bank/GMAC Mortgage Pay Up