GMAC faces no sanctions for signing foreclosure without verifying documents

The Associated Press
Posted Dec. 07, 2011, at 10:15 a.m.

AUGUSTA, Maine — Maine’s highest court has declined to find GMAC Mortgage in contempt for signing off on a home foreclosure without first verifying documents — a practice often referred to as “robo-signing.”

In a 5-1 decision on Tuesday, the Supreme Judicial Court upheld a decision by a lower court last year. Judge Keith Powers stopped short in that ruling of finding GMAC in contempt, though he did find the company submitted the foreclosure affidavit on behalf of Fannie Mae in bad faith.

The case involved a Maine woman who was unable to make her monthly mortgage payments after losing her job.

GMAC’s parent company issued a statement saying it was pleased with Tuesday’s ruling.

The company remains the target of a separate class-action lawsuit brought on behalf of Maine homeowners.

http://bangordailynews.com/2011/12/07/business/gmac-faces-no-sanctions-for-signing-foreclosure-without-verifying-documents/ printed on August 2, 2014