Texas, Iowa AGs Open Probe Into Ally/GMAC Foreclosure Practices

Bloomberg News reports:

• Attorneys general in Texas and Iowa, following Florida, have started their own investigations into foreclosure practices at Ally Financial Inc.’s GMAC mortgage unit.

• “The integrity of the foreclosure process is of utmost importance and we are very concerned by the issues that have been raised regarding Ally Financial’s treatment of affidavits,” Iowa Assistant Attorney General Patrick Madigan said yesterday. Iowa leads an 11-state working group of attorneys general and bank examiners exploring ways to prevent foreclosures.

• Texas Attorney General Greg Abbott opened an investigation “early this month,” said Tom Kelley, a spokesman for the office.(1) Iowa and Texas follow an announcement by Florida Attorney General William McCollum, who last month said he was investigating three Florida law firms handling foreclosures.

For more, see Texas, Iowa Attorneys General Probe Foreclosure Actions by Ally's GMAC.

(1) Texas is a non-judicial foreclosure state, and is not one of the 23 states originally included by Ally/GMAC in their list of states affected by their foreclosure "suspension/moratorium."