State Asks Lender to Stop Foreclosures

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HARTFORD, Conn. (AP) _ Connecticut Attorney General Richard Blumenthal says he is asking a mortgage lender to stop foreclosing in the state.

Blumenthal, a U.S. Senate candidate, announced Monday that he is investigating the mortgage practices of GMAC Mortgage LLC after an employee recently claimed to have signed off on more than 10,000 foreclosures in 23 states, including up to 2,400 in Connecticut, without having them properly verified.

Blumenthal says he’s looking into potential legal action against GMAC if they don’t end state foreclosures by Oct. 15.

Other state attorneys general, including in Texas, Florida and California, have launched their own separate investigations.

A spokeswoman for Ally Financial Inc., which owns GMAC, said she would not comment on Blumenthal’s request and that the company is confident processing errors did not result in any incorrect foreclosures.

(Copyright 2010 by The Associated Press.  All Rights Reserved.)

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