GMAC Mortgage is taking the eye-opening step of stopping evictions in 23 states because the affidavits used to support the kickouts contained information the employees didn’t themselves personally know to be true, and they were sometimes signed without a notary present, according to a company statement.

The company described the error as “technical” and said there were no problems with the underlying basis for the loan or the eviction.

Back in ’09, a deposed GMAC Mortgage employee said this his group of 13 people signed around 10,000 affidavits a month without checking their accuracy, as is required, instead depending on the law firms that were sending the affidavits for verification. It seems banks are catching wise that they can’t submit fraudulent documents to the courts anymore.

Ally Says GMAC Mortgage Mishandled Affidavits on Foreclosures [Bloomberg]

PREVIOUSLY
GMAC Halts Evictions In 23 States

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.