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Ohio AG Cordray Cries Foul in GMAC Foreclosure Case

Citing erroneous statements and acknowledged fraud, Ohio Attorney General Richard Cordray this week weighed in on a GMAC Mortgage foreclosure case that could cast a Parma, Ohio, man and his family out of their home.

Cordray filed a friend-of-the-court brief in the Cuyahoga County Common Pleas Court foreclosure proceeding and requested that the court take into account evidence that “GMAC committed fraud that tainted the entire judicial process.”

Cordray said that while it is uncommon for his office to intervene in individual foreclosure cases, the possible use of deceptive documents in this case impelled him to file the brief.

“Judges rely upon the accuracy of affidavits to grant judgments and ensure that the integrity of the judicial system can be trusted,” he said. “False affidavits throw the entire system into question. Foreclosures should not move forward when the basis of evidence is perjured statements.”

After Cordray filed a lawsuit against GMAC and its parent, Ally Financial Inc., for fraud earlier this month, he insisted that the company withdraw all pending foreclosures in Ohio in which faulty affidavits were used.

This particular foreclosure case, U.S. Bank National Association v. James W. Renfro, was but one of several in which GMAC filed a motion to withdraw of its own accord. On October 25, however, Judge Nancy Margaret Russo denied the motion and instructed the loan servicer to supply the court with “proof of integrity of all documents submitted” at a pretrial slated for November 8.

To notify the court of evidence of affidavit tampering, Cordray filed an amicus brief. The brief focuses on testimony provided by GMAC employee Jeffrey Stephan in two cases acknowledging falsification of affidavits and two prior sanctions against the company for filing false affidavits, and reviews the argument that filing false affidavits is an act of fraud on the court.


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