DEFAULTO THE SUBPRIME PARROT--BY UBIK

Default is Manufactured in China and Proudly Programmed in the USA

S-P-E-C-I-A-L    N-E-W-S    B-U-L-L-E-T-I-N

Sept. 23 (Bloomberg) -- Ally Financial Inc.’s GMAC Mortgage unit, which suspended evictions in 23 states last week after finding employees didn’t verify foreclosure documents, was sanctioned in 2006 for similar practices, court records show.

GMAC gave “false testimony” when it justified foreclosures by submitting sworn affidavits signed by a mortgage executive who later said in a deposition she didn’t actually review the loan documents or sign in the presence of a notary, according to a 2006 court order filed in Duval County, Florida.

In response to the sanctions, GMAC Mortgage directed employees to “read and fully understand” court documents before signing. “Do not sign unless you have that comfort level,” said a policy directive from GMAC Mortgage’s James Barden, then- associate counsel for the legal staff. “It is the integrity of our cases that is at stake and we cannot afford anything less than full accuracy.”

GMAC Mortgage is facing new allegations in court documents that it evicted homeowners without verifying that borrowers actually defaulted or whether the firm had legal standing to seize the homes (i.e., "where's the Note stupid!)

Ally, the Detroit-based auto and home lender, said this week it found a “technical” deficiency in its foreclosure process allowing employees to sign documents without a notary present or with information they didn’t personally know was true.

Ally is 53% owned by the US Government.

Where's the Note?   Where's the Note   AAAAAARRRRPP!!