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Upon further review

By Holden Lewis · Bankrate.com
Wednesday, October 13, 2010
Posted: 9 am ET

Two major mortgage servicers say they will review their foreclosure procedures in all 50 states.

GMAC Mortgage, a unit of Ally, says it has hired "several leading legal and accounting firms to conduct independent reviews of its foreclosure procedures in each of the 50 states."

That's a review, not a suspension of mortgage activity.

In addition to the review (by outside firms) of its mortgage procedures, GMAC says it's conducting a review of foreclosure sales nationwide "to ensure that: home preservation procedures have been fully followed; the timing and substance of the foreclosure is appropriate; and the file itself is in good order and complies with all laws and requirements of the state of jurisdiction."

And Wells Fargo is reviewing pending foreclosures where the borrower is 10 or more months delinquent, according to National Mortgage News. Again, that's a review, not a suspension of mortgage activity.

Wells is the second-biggest mortgage servicer and GMAC/Ally is the fifth-largest.

Today, a coalition of state attorneys general, led by the Iowa AG, are expected to announce an investigation into servicers' foreclosure practices.

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