The state of Ohio filed a lawsuit against GMAC Mortgage, alleging that the lender used fraudulent affidavits and documents to mislead courts in proceedings related to home foreclosures.

Attorney General Richard Cordray said GMAC Mortgage's parent Ally Financial had taken actions that raise questions about the legitimacy of foreclosures in 22 states including Ohio, USA Today reported.

Lawyers representing homeowners have obtained sworn statements from employees of some mortgage lenders indicating that foreclosure filings may not have been properly notarized or verified.

The Ohio attorney general's lawsuit alleges that GMAC Mortgage violated the state's consumer laws. It seeks as much as $25,000 in penalties for each violation.

The lawsuit mentions a deposition by Jeffrey Stephan, a GMAC employee. In a Maine lawsuit, Stephan said he signed as many as 10,000 foreclosure affidavits a month between 2006 and 2010, without having them properly notarized or reviewing the underlying documents as required.

Ally Financial denied its practices were fraudulent or deceitful, and vowed it would remedy any "procedural mistakes" that may have been made in legal documents.

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July 24 2013 at 12:57 PM Report abuse rate up rate down Reply