UPDATE 1-Ohio asks courts to review GMAC foreclosures

* Ohio asks courts to look at GMAC foreclosures

* Several states inquiring into GMAC

* GMAC confident no inappropriate foreclosures took place
(New throughout)

NEW YORK, Sept 28 (BestGrowthStock) – Fallout over GMAC Mortgage’s
foreclosure practices deepened on Tuesday as Ohio’s top law
enforcement official asked courts in that state to review all
foreclosure cases involving the Ally Financial Inc unit.

Richard Cordray, the state’s attorney general, said he made
his request after GMAC last week acknowledged that some
employees were submitting affidavits in foreclosure proceedings
without personally verifying the documents’ contents.

This has raised doubt over GMAC’s foreclosure process,
including whether some borrowers lost their homes without good
reason, exacerbating the nation’s housing crisis.

It has also raised the specter that procedural shortfalls
might be an industrywide problem, and not limited to GMAC.

Cordray said court oversight is needed to address the
concerns of borrowers facing “absolutely desperate situations,”
and protect the integrity of the foreclosure process.

Ally said this month it has suspended evictions and
post-foreclosure proceedings in 23 U.S. states, though it has
not halted foreclosure proceedings.

“We’re exercising an abundance of caution to preserve the
integrity of the process,” Ally spokeswoman Gina Proia said.
“We’re confident that the processing errors did not result in
any inappropriate foreclosures.”

Investigators in several states including California,
Colorado, Connecticut and Illinois are investigating GMAC
foreclosure practices or have asked the company to halt or
defend its foreclosures.

John Suthers, Colorado’s attorney general, in a Sept. 27
letter to Ally’s general counsel asked for an explanation of
all of GMAC’s foreclosure practices, “to ensure that fair and
accurate representations are made when it pursues foreclosure
actions” in that state.

JPMorgan Chase and Co (JPM.N: ), one of the biggest U.S.
lenders, is separately being questioned about its practices by
Florida lawyers who said one bank executive authorized a
foreclosure without personally reviewing the underlying
details. A bank spokesman declined to comment. [ID:nN27263592]

Proia says Ally hopes to address the “vast majority” of
cases involving improperly signed affidavits by year end.
(Reporting by Jonathan Stempel in New York; Additional
reporting by Al Yoon; Editing by Kenneth Barry, Bernard Orr)

UPDATE 1-Ohio asks courts to review GMAC foreclosures