I’m wholly unsurprised that Ally (fka GMAC) has been forced to withdraw foreclosure affidavits signed by a second robo-signer. In fact, I would suspect that the vast majority of their foreclosures are wholly invalid. But the best part, by far, is the final sentence: “Ally, which is majority-owned by the U.S. Treasury Department, did not immediately respond to requests for comment.” Surprise, Surprise, Surprise. I would expect no less from a government whose sole purpose seems to be protecting the top 1%. Well that, and the status quo, of course.

More GMAC shenanigans.

Once upon a time, there was this guy. Let’s call him ‘Bob.’

Bob got a job with a Mortgage firm, and he did well. He ended up with the responsibility to research, verify, and sign foreclosure affidavits. He did well for awhile, but then the housing bubble burst, and the banks went into ‘Save Ourselves’ mode and made foreclosing the new dance craze: everybody was doing it, and it went on all night.

So one day Bob was looking at two or three foreclosure affidavits; the next day, he was just scribbling his signature on five hundred.

This is illegal, surprisingly of course, and after several years, when called before a Pennsylvania Court to testify to his affidavits, Bob did the right thing and admitted that he signed the documents despite having no knowledge of their contents.

So GMAC Mortgage halted foreclosures in 23 … Read More »

Not according to free market capitalism. 

But Bankers don’t adhere to the principles of the free market (and neither do their supporters), so I guess it doesn’t matter.

If increased regulation on the banks is going to drive down profits so greatly, I guess the TBTFs will have to find another line of business to corrupt be bailed-out in. Though I suspect that there will be virtually no enforcement of any regulations, even if some regulations go through, which I doubt. 

Levitin, Adam. “The War on Bank Profits?” Credit Slips, 10 September, 2010.