GMAC Residential Capital Lists 200-999 Creditors, Failing to Disclose Tens of Thousands of Homeowner Claims
By Daniel Edstrom
DTC Systems, Inc.
Note that the original article has been updated to fix my mistake of showing 299 creditors when the number of creditors listed on the Voluntary Petition was 200-999. On April 13, 2011 the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation issued a Cease and Desist Consent Order against Ally Financial Inc. fka GMAC LLC, Ally Bank fka GMAC Bank, Residential Capital LLC (and its direct and indirect subsidiaries) and GMAC Mortgage LLC. During the period of 1/1/2009 to 12/31/2010, the Mortgage Servicing Companies completed 89,998 foreclosure actions, representing less than 4 percent of the Servicing Portfolio over such such time period. View the attached Voluntary Petition below to see the number of creditors identified. The regulators found the following:
WHEREAS, in connection with the process leading to certain foreclosures involving the Servicing Portfolio, the Mortgage Servicing Companies allegedly:
- Filed or caused to be filed in state courts and in connection with bankruptcy proceedings in federal courts numerous affidavits executed by employees of the Mortgage Servicing Companies or employees of third-party providers making various assertions, such as the ownership of the mortgage note and mortgage, the amount of principal and interest due, and the fees and expenses chargeable to the borrower, in which the affiant represented that the assertions in the affidavit were made based on personal knowledge or based on a review by the affiant of the relevant books and records, when, in many cases, they were not based on such knowledge or review;
- Filed or caused to be filed in courts in various states and in connection with bankruptcy proceedings in federal courts or in the local land record offices, numerous affidavits and other mortgage-related documents that were not properly notarized, including those not signed or affirmed in the presence of a notary;
- Litigated foreclosure and bankruptcy proceedings and initiated non-judicial foreclosures without always confirming that documentation of ownership was in order at the appropriate time, including confirming that the promissory note and mortgage document were properly endorsed or assigned and, if necessary, in the possession of the appropriate party;
- Failed to respond in a sufficient and timely manner to the increased level of foreclosures by increasing financial, staffing, and managerial resources to ensure that the Mortgage Servicing Companies adequately handled the foreclosure process; and failed to respond in a sufficient and timely manner to the increased level of Loss Mitigation Activities to ensure timely, effective and efficient communication with borrowers with respect to Loss Mitigation Activities and foreclosure activities; and
- Failed to have adequate internal controls, policies and procedures, compliance risk management, internal audit, training, and oversight of the foreclosure process, including sufficient oversight of outside counsel and other third-party providers handling foreclosure-related services with respect to the Servicing Portfolio. Continue reading “GMAC Residential Capital Lists 200-999 Creditors, Failing to Disclose Tens of Thousands of Homeowner Claims” »
GMAC Residential Capital Declares Bankruptcy
By Daniel Edstrom
DTC Systems, Inc.
According to Residential Funding Corporation, GMAC was one of the largest entities securitizing loans in 2000. This bankruptcy probably has an impact on nearly every single GMAC based loan or loan that was securitized by GMAC. Many of the GMAC deals pledged the loans to the trusts but never actually perfected the transfer. This could mean that your “lender”, “creditor” or “owner” of these loans is one of the many related entities of Residential Capital (RESCAP) – which may be a problem because they have probably been paid in full. Many of these entities had a security interest in the money advanced to fund the loans, even though they were not the named lender. Many of these entities were required and obligated to make payments on the borrowers loans – and they did in fact make payments. Many of these entities had guarantee agreements with other parties (such as servicers) to reimburse them for payments of principal and interest made on borrowers loans.
Here is the list of related entities RESCAP is attempting to consolidate into one bankruptcy:
- ditech, LLC
- DOA Holding Properties, LLC
- DOA Properties IX (Lots-Other), LLC
- EPRE LLC Equity Investment I, LLC
- ETS of Virginia, Inc.
- ETS of Washington, Inc. Continue reading “GMAC Residential Capital Declares Bankruptcy” »
Fannie Mae Announces Year-End Servicer Performance Scorecard Results
By Daniel Edstrom
DTC Systems, Inc.
Quote from news release dated March 15, 2012:
The STAR Program was created to establish standards and recognize excellence among Fannie Mae servicers in their overall performance, customer service, and foreclosure prevention efforts.
Another Quote:
Overall STAR performance rankings are issued on an annual basis each April.
Apparently Fannie Mae missed the flood of Cease and Desist Consent Orders issued by various government regulators on April 13, 2011 for unsafe or unsound foreclosure policies and practices. The government regulators were the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Federal Housing Finance Agency.
Fannie Mae has apparently missed the fact that nothing has changed and the servicers are not abiding by the Cease and Desist Consent Orders, unless they are doing this in secret or on a limited basis.
Here is the text of the news release, followed by the STAR Scorecard results for the previous quarters in 2011. Continue reading “Fannie Mae Announces Year-End Servicer Performance Scorecard Results” »
New Century Mortgage Corporation Bankruptcy May “Restart” Because Residential Borrowers Were NOT Notified of the Bankruptcy
By Daniel Edstrom
DTC Systems, Inc.
New Century Financial Corporation and its related entities filed voluntary bankruptcy on April 2, 2007. Persistent Pro Se homeowners are holding the New Century Bankruptcy to task by insisting they, like thousands of other homeowners (if not tens of thousands) were never notified of the New Century bankruptcy. Homeowners with claims would be considered “creditors” in the New Century bankruptcy. If the judge resets the bar date, the bankruptcy would “start over”, or at least the claims period would be opened once more. If this occurs, it is possible New Century would have to notify homeowners with New Century loans that they may be potential creditors. Because of the fraudulent paperwork created by mortgage services and lenders, the number of claims by residential borrowers skyrocket.
The New Century Liquidating Trust insisted the Pro Se borrowers were wrong and everything was fine.
The next hearing on the matter is May 23 2012 in Judge Carey’s courtroom in Delaware. On April 25, 2012, this is briefly what happened at the Omnibus hearing according to “Abby”:
Judge Carey came out for the homeowners in today’s telephonic hearing. Hahn & Hessen, the appointed trustee’s counsels from NYC, wanted to do the substantive arguments TODAY..but Carey shot them down. They wanted to have only a cross examination of Atty. Uhland on May 23rd and Carey shot them down – he said no. He expected direct and cross. He is taking this as a WHOLE NEW evidentiary hearing. Atty. Uhland had been responsible for the bar date publication for one day each in the Wall Street Journal and the Orange County Register.
Homeowner/borrowers were never notified of the bankruptcy even though New Century had the contact data for each homeowner/borrower.
Also, the appointed bankruptcy trustee, Alan Jacobs was ordered back for the hearing on May 23, 2012 as well as Atty. Uhland. Pro se Homeowner/borrowers will have about a month to prepare their questions for testimony from Atty. Uhland and the bankruptcy trustee Alan Jacobs.
For a list of other loan originators who have imploded and declared bankruptcy, such Mortgage Lenders Network USA, Inc. and Accredited Home Lenders, Inc., go to the infamous “Implode-O-Meter” (TM) website (http://ml-implode.com/) from Martin Andelman, author of the Mandelman Matters Blog (http://mandelman.ml-implode.com/)
Omnibus Reply of the New Century Liquidating Trust to Objections to Motion for Entry of An Order to Determine That the Debtors Have Complied with the Order Establishing Bar Dates for Filing Proof of Claim and Approving Form, Manner and Sufficiency of Notice Thereof [D.I. 1721]: http://dtc-systems.net/wp-content/uploads/2012/04/NCLT_DI-10853_re_Bar_Date.pdf
Response of Molly S. White and Ralph N. White in Objection to the New Century Liquidating Trust Motion Requesting an Order That the Debtors Have Complied with the Bar Date Order for Filing Proofs of Claim and Approving Form, Manner and Sufficiency of Notice: http://dtc-systems.net/wp-content/uploads/2012/04/Pro_Se_objection_to_NCLT.pdf
New Century Liquidating Trust 1st Quarter 2012 financials: http://dtc-systems.net/wp-content/uploads/2012/04/1st_qtr_2012_financials.pdf
There are numerous other objections from other Pro Se’s, but this is the only one we currently have.
