Will Massachusetts become the latest state to take on faulty foreclosures?
Attorney General Martha Coakley may become the latest to jump into the burgeoning controversy over allegations of assembly-line style foreclosures at major mortgage industry loan servicers. These are firms that are servicing mortgages originated by other lenders, including pushing forward with foreclosures when homeowners fall behind on their payments. At issue are revelations that a GMAC Mortgage employee signed off on thousands of foreclosure documents without checking their accuracy. The GMAC middle manager has owned up to signing 10,000 foreclosures a month. That's 500 a day, or one per minute. How reassuring is that? A spokeswoman for Coakley's office told me yesterday our AG is exploring the issue, but as a practice does not comment on whether a formal investigation has been launched.