Last September’s robo-signing scandal was brought to the fore by GMAC Mortgage LLC. This giant in the industry claims it has revamped its foreclosure procedures since then, in order in order to improve its foreclosure and the rest of its servicing business procedures.
GMAC Mortgage LLC revamped its foreclosure procedures to improve its foreclosure & its s servicing business procedures.
A number of measures have been implemented to get GMAC to where it wants to be, business-wise and in the minds of the public. For one, GMAC is requiring its employees that work on foreclosures to undergo an additional 40 training hours and thereafter they are tested on their learning objectives. Those firms outside of GMAC who handle some of its foreclosures most divulge their procedures as well as submit to on-site reviews.
These changes were put in place to remedy a since acknowledged weakness in GMAC’s foreclosure procedure. One employee claimed in a deposition last year that the had signed off on up to 100,000 foreclosure documents without properly reviewing them.
The firm says that it has focused on overhauling and improving its servicing business since it has resumed its suspended foreclosure sales. After a review of around 25,000 loan files, a GMAC spokesperson says that there has not been a single instance in which a borrower was foreclosed on who wasn’t in significant default.
Although GMAC’s performance in the mortgage-modification arena has improved, some say that the servicer’s willingness to assist financially-distressed borrowers has back-slid since last year. Some are finding it difficult to work with the firm.
One complaint is that GMAC is slow about its foreclosure operations. A lawyer representing homeowners says he has seen very little activity in the many GMAC-related cases that he is handling. A GMAC representative blames courtroom backlogs and new firms taking on cases for the delays.