TLP: Wonder if This Has Something to Do With the "Egg Management Fee"

Tuesday, September 21, 2010 , , , 5 Comments

ally foreclosure
Or maybe someone got carried away at the thought of a pony.

The Washington Post:
Ally Financial Inc., the troubled lender that is majority-owned by the federal government after a bailout during the financial crisis, has temporarily suspended evictions on foreclosed homes in 23 states.

In an internal memo dated Sept. 17 and marked "urgent," brokers and agents of the company's GMAC mortgage unit were ordered to immediately halt evictions, cash-for-key transactions and lockouts. Ally, the nation's fourth-largest home loan originator, may "need to take corrective action in connection with some foreclosures" in the affected states, the memo said.

Ally Financial spokesman James Olecki said the suspension will allow the company time to review files for a "potential issue" related to legal forms required for such proceedings. The 23 states mentioned, which span the country from New York and Florida to Hawaii, are the ones that "follow a more judicial foreclosure process," he said.

"We are going back to review our process in those states and continue to remove states we have confirmed all requirements have been met," Olecki said.

He said the company is "committed to preserving the integrity of the foreclosure process," but declined to respond to questions on the specific issues involved because of pending litigation. Olecki said that while some existing foreclosures may experience delays, new foreclosures will continue on a normal timeframe.

The U.S. Treasury Department, which owns a 56.3 percent stake in GMAC after bailing it out, was not involved the decision, Olecki said.

Treasury officials declined to comment.
Definitely more questions than answers here so far. Questions like, "What does that even mean?" But when you're looking at how the fourth-largest mortgage originator has been handling loans in nearly half the states, you can pretty much guess that something is up.

If nothing else, it's certainly a new way to go about seeking a modification.

The Lazy Paperboy

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


OldSouth said...

Not the egg management fee, per se; but rather the smell of rotten eggs, as in 'Something rotten in Denmark'.

Denninger at Market Ticker is following the saga. Juicy, stinky stuff.

People used to go to jail for this behavior.

W.C. Varones said...

In other news, the Dirty Fed said the economy is totally fucked and they are going to debase the currency as much as necessary to keep the stock market afloat in nominal terms, and gold hit another new high.

But that's all Same Shit, Different Day.

I just fap-fap-fapped one out to your comment, WCV.

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