Eternalized in Slang
Jeffrey Stephan, the back-office GMAC Mortgage employee who rubber-stamped foreclosures without verifying them, has made his way into the lexicon.
Last week, someone entered
As in, "Did you see that way his company totally Jeffrey Stephan-ed him?"
The so-called robo-signer became the latest
The practice, described in detail in a deposition of Stephan, came to light after GMAC, the mortgage unit of Ally Financial Inc., said it was suspending evictions of homeowners and sales of seized properties in 23 states while it investigates potential problems arising from a "procedural defect" in the execution of court documents. The news put a
GMAC stressed that the problem was not related to just one individual. (The name of at least one other
The Urban Dictionary site, which has logged more than 5 million entries since its creation in 1999, lists six definitions for the word
There are no entries for "foreclosure."
Eye on GMAC
Meanwhile, the fallout from GMAC's announcement continues.
Ohio Attorney General Richard Cordray issued a
"I wanted to draw your attention to this issue," he wrote. "More broadly, I urge you as administrators to share this letter with your colleagues and urge them to exercise caution when approving any foreclosure orders involving GMAC. Further, I encourage you to consider whether additional administrative procedures need to be established to protect homeowners who are facing the threat of foreclosure."
Cordray has been particularly active on the foreclosure front, being the first attorney general in the country to file a lawsuit against a loan servicer, claiming violation of the state's consumer laws. Currently, he has cases pending against Carrington Capital Management LLC's servicing unit, Wilbur Ross' American Home Mortgage Servicing Inc. and HomEq Servicing, which is now a part of Ocwen Financial Corp.
Cordray's letter follows similar if not more aggressive actions by attorneys general in Iowa, Illinois, North Carolina, Connecticut and California.
In
"The GMAC/Ally foreclosure steamroller should be stopped so the company can be held accountable," Blumenthal said in a press release. "The bank's apparent failure to follow basic legal procedure — a potential fraud on the court — is appalling and unacceptable. Our investigation will enable strong legal action against GMAC/Ally, if warranted by the facts and the law."
Attorneys general in
On Friday, Edmund G. Brown Jr., the attorney general in
Florida Attorney General William McCollum said last month that his office was
The Un-Walkaway
Buyers of foreclosed homes through courthouse auctions are finding interest from an unusual crop of clients: the original owners who are still living in the homes.
John Helmick, the chief executive of
Last week, he bought a house at auction and within six hours had sold it back to the original occupants in a pre-arranged deal. Helmick pocketed $10,000 for his trouble. The defaulted homeowner paid $93,368.81 for the home, which extinguished a $130,000 first lien.
"Is this going to be a trend, the new way to