The Illinois Attorney General’s office said Friday that it was “demanding” a meeting with Ally Financial, commonly known as GMAC Mortgage, to determine how many Illinois homeowners may be involved in an investigation of the company’s foreclosure procedures and whether the state’s Consumer Fraud Act had been violated.
An Ally employee testified in a Florida court case that he signed at least 10,000 affidavits a month to process foreclosures without reviewing the underlying paperwork and that those documents were then filed with the court as evidence of Ally’s rights to foreclose on the homes.
Ally said this week that it was halting evictions tied to foreclosure lawsuits in 23 states, including Illinois. However, the lender continues to initiate foreclosure proceedings.