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Wednesday, October 6, 2010

A wave of thelawsuits

The foreclosure crisis has taken a new turn in the past few weeks for those not following the news closely. As mortgages were traded and retraded the paper trails got fuzzier and fuzzier.

With the massive flood of foreclosures, processing companies avoided the legal requirements and due diligence by rubber stamping foreclosures. Now the shit is hitting the fan. Some states have halted all foreclosures and the first of what will be a flood of lawsuits in Ohio has been filed.

WASHINGTON — Ohio's attorney general is suing Ally Financial Inc. and its GMAC Mortgage division, alleging the company violated state fraud laws in handling foreclosure cases.

The action could be the first in a wave of lawsuits by state regulators over what appear to be widespread problems in documents used by the nation's largest mortgage lenders.

Who needs financial reform? Republicans still believe it isn't needed.

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