GMAC Mortgage said it has hired several legal and accounting firms to conduct independent reviews of its foreclosure procedures in all 50 states.
Tuesday afternoon the nation's fifth largest servicer said that "foreclosure sale files nationwide receive an additional review by a specialized team to ensure that: home preservation procedures have been fully followed; the timing and substance of the foreclosure is appropriate; and the file itself is in good order and complies with all laws and requirements of the state of jurisdiction."
Two weeks ago the government owned lender/servicer suspended certain foreclosures in 23 states after allegations arose that it cut corners on its paperwork and used "robo-signers."
"Foreclosure is a very serious matter and only implemented when all other home preservation options have been fully exhausted," the firm said. "We are taking these additional steps to restore confidence in the process, which is critical for the stability of the home and mortgage industry."
It added that in addition to the new measures, the review and remediation activities related to cases involving judicial affidavits in the 23 states continues and has been underway for approximately two months.
