Federal regulators have ordered Midvale-based Ally Bank to fix significant deficiencies in its foreclosure practices covering a two-year period in which among other things it submitted bogus legal documents for bankruptcies and other court actions.
The order from the Federal Reserve and the Federal Deposit Insurance Corp. alleges employees of Ally, two sister companies and their parent company, Allied Financial, signed foreclosure documents without reading them ¬— a possibly illegal practice known as “robo-signing.”
The Fed and the FDIC issued the order in April. It was made public Friday.
The employees “represented that the assertions in the affidavit(s) were made on personal knowledge or based on a review ... of the relevant books and records, when in many cases, they were not based on such knowledge or review,” according to the order.
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