Barofsky probes GMAC foreclosure problems, paperwork problem?

[WhiskeyGirl]

Bailout watchdog probes GMAC foreclosure problems

WASHINGTON — A government watchdog is investigating government-owned GMAC Mortgage after a company employee admitted to approving thousands of foreclosures without reading the paperwork.

The special inspector general for the $700 billion financial bailout is looking into the improper foreclosures, which led GMAC Mortgage to halt foreclosures in 23 states, a spokeswoman for the watchdog said.

The investigation highlights the Treasury Department's competing priorities for GMAC. As majority-owner of GMAC parent Ally Financial, Treasury wants the company to regain its financial footing so it can repay its bailouts and return to private hands. That has led Treasury to avoid meddling in GMAC's day-to-day business.

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GMAC Mortgage halted some foreclosures last month after an employee admitted to approving 10,000 foreclosures per month. The employee signed court papers swearing that the foreclosure documents were accurate. But he did not read the documents.

"Treasury, as a matter of long-standing policy, is not involved in the day-to-day management of any private company," spokesman Mark Paustenbach said in a statement. He said Treasury has "made clear that these firms must follow the law," and supports efforts by enforcement agencies and regulators to hold the companies accountable for any illegal actions.

more here - http://www.google.com/hostednews/ap/article/ALeqM5j8LhjGGcgU5Ftc4RBZgKWx6ammuAD9IQES480?docId=D9IQES480

Who put this policy into place?  One person doing 10,000 a month?

Where does the buck stop?  Tim?