This page has been archived and commenting is disabled.

GMAC Boycotts Massachusetts, Will Halt State Mortgages In Retaliation For Lawsuit

Tyler Durden's picture




 

Following yesterday's announcement that the state of Massachusetts would sue 5 mortgage lenders among which the bailed out subprime failure formerly known as GMAC and now known by the much more idiot-friendly name "Ally", the latter has decided to take matters into its own crazy hands and escalate matters by confronting the entire state of Massachusetts in a move that will generate even greater anger among the broader population, aimed squarely and rightfully at the banks all over again. In an email sent out today, GMAC Bank said it would "no longer accept new locks for properties located in the Commonwealth of Massachusetts." The reason given: "This change is necessary due to the complexity of transacting business in an increasingly difficult legal environment in Massachusetts." By complexity GMAC of course means being confronted with Attorneys General who refuse to be pushed over or jump when the banking cartel says so. In essence, GMAC (with other lenders likely to follow suit) has decided to boycott states that dare to break away from the settlement talks and to pursue unilateral action. Alas, since pretty soon every state will be suing the banks now that the Nash Equilibrium of the settlement negotiations has collapsed and it is every state for itself, GMAC better figure out a way to make money doing something besides lending as very soon the "legal environment" in every state is about to get "increasingly difficult."

Naturally, MA AG Martha Oakley had some choice words for GMAC in the aftermath of this idiotic announcement. From the WSJ:

Ms. Coakley, responding in a statement to GMAC's move, said in order to do business in the state GMAC has to follow the law before foreclosing on homeowners. She said she was looking to hold the lenders accountable for actions and enforce the strict foreclosure laws in the state. "With today's action, it appears GMAC has acknowledged it has a problem following those laws and being held accountable for doing so," Ms. Coakley said. A spokeswoman for Ally wasn't immediately available to respond to Ms. Coakley's comment.

As a reminder...

The Massachusetts civil suit, filed in Superior Court in the state's Suffolk County, alleges that the banks' foreclosure practices were unlawful and deceptive. The suit, which doesn't specify damages, contends the banks—Bank of America Corp., J.P. Morgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally—charted a "destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law."

 

The banks have in the past acknowledged problems with their foreclosure processes, but said they haven't found anyone who was wrongly foreclosed upon.The robo-signing practice involves people who allegedly signed many foreclosure documents without properly reviewing them.

Yet mortgage lending is merely a small portion of GMAC's book, which prides itself in lending out subprime loans to GM car buyers.

The mortgage business, a much smaller portion of Ally's total revenues than auto lending, forced a $471 million write-down in the third quarter because of historically low interest rates

We can't wait to discover how long it takes before comparable robosigning practices are discovered when it comes to car loans for GM's NINJA customers, and the 74%-government owned lender is forced to stop transacting in any lending venue.Which of course would mean that every car sale by GM would end up on some dealer's showroom as channel stuffing moves to represent 100% of GM's monthly "sales."

As for GMAC's decision, it is more than clear that the second any lender is challenged on their MO, they will high tail it instead of risk suffering further liabilities.

"It also sends a signal to Massachusetts and other states that if you make it difficult for lenders to act they will take their business elsewhere," Mr. Cecala said of GMAC's decision. 

And that in a nutshell is how US banks operate: break the law until for some crazy reason you can no longer break the law.

Then just high tail it out of Dodge post haste.

h/t David

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 12/02/2011 - 19:02 | 1940261 Sequitur
Sequitur's picture

Dear GMAC:

Go fuck yourselves. I hope the attorneys general of the lower 48 bankrupt you.

This holiday season, I implore all readers to avoid any GMAC- or ALLY-related loan. Let the cunts starve.

Fri, 12/02/2011 - 19:06 | 1940277 1835jackson
1835jackson's picture

ooooohhhh harsh words for harsh times I like it! "You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out!"

Fri, 12/02/2011 - 20:17 | 1940443 topcallingtroll
topcallingtroll's picture

I love that quote from old Hickory.

Sat, 12/03/2011 - 01:47 | 1941013 trav7777
trav7777's picture

GMAC should claim "sovereign immunity" or "supremacy clause" to get these suits thrown out.  Because they have merged with the fucking Treasury already

Sat, 12/03/2011 - 07:23 | 1941226 mick_richfield
mick_richfield's picture

We will seize a whip, and drive them from the steps of that temple.

We will break their tables and scatter their false coins.

Sat, 12/03/2011 - 10:34 | 1941359 SamuelMaverick
SamuelMaverick's picture

Sorry fellow ZH'ers, but the State Government of Mass can go fuck itself. The State and Federal regulatory agencies are just as guilty of criminal negligence as are the banks. 

Sat, 12/03/2011 - 11:05 | 1941398 Arthor Bearing
Arthor Bearing's picture

NO SIR FUCK YOU

Sat, 12/03/2011 - 14:08 | 1941693 MachoMan
MachoMan's picture

While true, progress will only be made when all of the morally bankrupt parties start fighting each other...  seems this would be a definite attempt to bite a fellow shark...  and for those of us just trying to tread water in shark infested waters, let them eat each other instead of us for a change.  So, while it can go fuck itself as far as individual citizens are concerned, it shouldn't be chastized for trying to eat other sharks.

Fri, 12/02/2011 - 20:34 | 1940476 Thomas
Thomas's picture

That whole potty mouth thing I find here makes me crazy. You've got to clean it up. You are supposed to say things like "You f%#@ing c*&$ s&@$ing pieces of sh*t. Go play a rusty trombone." Can we now clean it up?

Fri, 12/02/2011 - 21:42 | 1940582 Bansters-in-my-...
Bansters-in-my- feces's picture

 Thomas...."Shut up and show me your tits".....Bitch.

Fri, 12/02/2011 - 22:00 | 1940615 Jim in MN
Jim in MN's picture

Avatar girl fight!  (gets out folding chair and pops beer open)..wasn't there something about mortgages, I mean Chains of Eternal Fraud going on?  Oh never mind.  Do go on.

Fri, 12/02/2011 - 22:30 | 1940646 TheLooza
TheLooza's picture

That reminds me.  The awesomest chick fight I've ever seen.  Looks like it went down on Black Thursday night.  It is NSFW.

http://theync.com/media.php?name=24824-ridiculous-fight

Sat, 12/03/2011 - 10:55 | 1941384 Seize Mars
Seize Mars's picture

don't click on this

Sat, 12/03/2011 - 20:12 | 1942605 MisterMousePotato
MisterMousePotato's picture

One has to admit that there is kind of an odd, sophomoric 'humor' that seems almost institutionalized here at ZeroHedge. Sometimes funny, but more often a bit off putting, even to one such as me who thinks nothing of saying s**t, f**k, p**s when doing simple home maintenance and the like.

It is, in fact, so striking that I have to think that there must be a reason for it, but I'll be d****d if I know what it might be.

There are times I hesitate to send links to articles to others because of the language and avatars, but I've yet to hear anyone complain.

Fri, 12/02/2011 - 23:25 | 1940748 Thomas
Thomas's picture

I am Mercury Girl and Mercury Girl does not stoop to that level.

Sat, 12/03/2011 - 01:08 | 1940950 Real Money Wins
Real Money Wins's picture

Arm Yourselves Citizens

The time for talk is over!

Let the traitors swing from the Liberty Oak Trees!!

 

Sic semper tyrannis

Fri, 12/02/2011 - 22:07 | 1940622 Bicycle Repairman
Bicycle Repairman's picture

One state down.  49 more and Ally can close up its doors.  Brings a tear to my eye.

Sat, 12/03/2011 - 14:36 | 1941753 VelvetHog
VelvetHog's picture

Amen, Brother!  or is that Almond?

Sat, 12/03/2011 - 15:23 | 1941940 Below Zero
Below Zero's picture

Unfortunately there are only a few states where the political puppets are not bought and paid for by the banksters. Look how long the AGs have "labored" to arrive at a settlement with the crooks. Ally won't be the only one to stop doing business in states where they are compelled to stop swindling the population. When fraud is your business plan it doesn't pay to have to play by the rules and laws. They will just go and shit more in someone else's backyard that doesn't care about the laws.

Sat, 12/03/2011 - 02:38 | 1941067 Hacksaw
Hacksaw's picture

Another sweet one from Old Hickory.

Many of our rich men have not been content with equal protection and equal benefits, but have besought us to make them richer by act of Congress. By attempting to gratify their desires we have in the results of our legislation arrayed section against section, interest against interest, and man against man, in a fearful commotion which threatens to shake the foundations of our Union.

Fri, 12/02/2011 - 19:11 | 1940290 Granangry
Granangry's picture

Sequitur - you hit the nail on the head. In a few weeks the geniuses at GMAC will back track and relent a la Bank of Countrywide Lynch on their $5 debit fees. I'll go one step further ask readers to avoid the lending from any major bank. In particular, if buying a new car, take all the cash incentives the dealers and manufacturers are willing to offer and then go refiannce thru a club like AAA or moneyaisle. You can get rates in the 1-2% range.

Fri, 12/02/2011 - 19:38 | 1940350 NotApplicable
NotApplicable's picture

GMAC is now a fedgov operation, so they do not need to please any customers, nor can they be bankrupted.

Fri, 12/02/2011 - 20:07 | 1940414 Ahmeexnal
Ahmeexnal's picture

Nor can they be prosecuted.

Fri, 12/02/2011 - 20:18 | 1940446 nmewn
nmewn's picture

So two enablers hang it up in Mass. within the same week.

What are the odds? ;-)

Fri, 12/02/2011 - 22:00 | 1940613 4horse
4horse's picture

GM: alla merkin. ezra merkin

.  .  .  heardahim lately

At the time that the original report was published on December 30th, [2008] CNN News had missed this story completely, even though GMAC had just received $5 billion of Federal Bailout funds. As of the time of this posting CNN.com has no mention of the Merkin resignation. Instead, CNN continues to find ways to publish falacious stories about how evil Israel is and how they are committing massacres in Gaza.
so phallacious, ya gotta picture this: http://www.vosizneias.com/24616/2008/12/22/new-york-ezra-merkins-involvment-in-bernie-the-ganef-scheme-comes-to-light/
as you likewise gotta picture
                                         What's Good For GM, Is Good Fora Merkin

cars.Trucks. Homes
No.
homes.Loans.Financing.Mortgages.Money.Derivitives.CDOs

NWO, valued customer's been left worthless
cause 1thing is now relentlessly self-evident

 
GM: your product is immaterial. only making money matters: no new name. don't print new logo. Print Money
 
 
for there are no longer any products anyway : no cars. clothes. homes. work. labor. trucks. greasemonkeys. teachers. preachers. doctors. medicine. law. government. justice  .  .  .  only the means by which one can turn whatever anywhich widget into an instrument, a finacial product, of Power and its ongoing accumulation of capital

LOOK: everything/everywhere's only a matter of money, which from here-on-in is all there's to be given/gotten

SO: GM AC - DC mr. fixit, alla merkin's legacy left is to just face-it and fuckit, mr. goodwrench, by erecting only 1new needed lone slogan'n'sign along its dilapidated highways
no longer MOBIL

          but
 like our very own
WINGED PIGASUS

 

NO PRODUCTS

       logo

ONLY PROFITS

 

 

Fri, 12/02/2011 - 22:48 | 1940676 weinerdog43
weinerdog43's picture

Shorter mmmmen....   "whatever you do, don't look at my butt buddy Rick Perry"

Sat, 12/03/2011 - 07:05 | 1941221 nmewn
nmewn's picture

lol...maybe I should have said take it up the ass instead of hang it up on Mass.

Fri, 12/02/2011 - 23:18 | 1940735 DaveyJones
DaveyJones's picture

and once again, the solution doesn't happen without bankrupting those in political power. Both sides of the same coin need to be flipped at once  

Fri, 12/02/2011 - 20:46 | 1940504 RafterManFMJ
RafterManFMJ's picture

 

 

Only a dullard goes GMAC...two words - Credit Union.

Sat, 12/03/2011 - 02:14 | 1941041 Arkadaba
Arkadaba's picture

two better words - second hand

I have never and would never buy a new car - doesn't make sense

Sat, 12/03/2011 - 04:48 | 1941168 Deo vindice
Deo vindice's picture

How right you are.  Doesn't make 'cents' and certainly doesn't make dollars.

Buying a new car is paying for a depreciating assett.

Fri, 12/02/2011 - 21:58 | 1940610 Jim in MN
Jim in MN's picture

Um...credit unions.

Fri, 12/02/2011 - 19:12 | 1940295 HelluvaEngineer
HelluvaEngineer's picture

+1 Guiness

Fri, 12/02/2011 - 19:22 | 1940318 SilverRhino
SilverRhino's picture

Does GMAC think that this is actually going to work?   Fuck them.   :-)

 

Fri, 12/02/2011 - 23:02 | 1940711 Buck Johnson
Buck Johnson's picture

Take them on, take them on. 

Fri, 12/02/2011 - 23:10 | 1940726 PulauHantu29
PulauHantu29's picture

The Hubris of the financial industry is mind boggling. I guess since the people who caused the disaster were most rewarded by both Bush and Barry, they untocuhable...it has been thus so far.

Fri, 12/02/2011 - 23:17 | 1940732 Maximilien Robe...
Maximilien Robespierre's picture

Oligarchs.

    Oligarchy (from Greek , oligarkhía[1]) is a form of power structure in which power effectively rests with an elite class distinguished by royalty, wealth, family ties, commercial, and/or military legitimacy. The word oligarchy is derived from the Greek words  (olígos), "a few"[2] and the verb (archo), "to rule, to govern, to command".[3]

    Throughout history, most oligarchies have been tyrannical, relying on public servitude to exist, although others have been relatively benign. Plato pioneered the use of the term in Chapter Four, Book Eight of "The Republic" as a society in which wealth is the criterion of merit and the wealthy are in control. The actual literal translation from the Greek is "rule of the few". However oligarchy is not always a rule by wealth, as oligarchs can simply be a privileged group, and do not have to be connected by bloodlines as in a monarchy. Some city-states from ancient Greece were oligarchies.

Sat, 12/03/2011 - 08:53 | 1941259 flattrader
flattrader's picture

>>>"It also sends a signal to Massachusetts and other states that if you make it difficult for lenders to act they will take their business elsewhere," Mr. Cecala said of GMAC's decision.<<<

Don't let the door hit you in the ass as you leave the state fuckers.

Sat, 12/03/2011 - 08:59 | 1941262 Absinthe Minded
Absinthe Minded's picture

It's like a drug dealer selling his shit somewhere else because there are too many police around. Push your shit somewhere else Ally. By the way, I hate their fucking stupid commercials on the radio. Keep reducing your market and just dry up and blow away like an old dog turd. No offense TF.

Sat, 12/03/2011 - 10:46 | 1941368 jplotinus
jplotinus's picture

GMAC has thrown down the gauntlet this time. It is imperative that all ( or at least some) other states respond with solidarity with MA. In other words, ban GMAC.
As a publicly bailed-out entity, it is questionable that
GMAC even has the legal right to discriminate against MA. Their action is a form of "red-lining" writ large. It might also be a form of extortion or an attempt to thwart the legal process.

I hope the OWS movement will jump into this fray promptly.

OCCUPY GMAC!!

Sat, 12/03/2011 - 11:23 | 1941415 daily bread
daily bread's picture

Red-lining .. didn't Obummer get his start in "community organization" for people fighting red-lining practices in Chicago?  He should be all over GMAC/Ally for red-lining MA.

Sat, 12/03/2011 - 12:14 | 1941482 covert
covert's picture

it's the right thing to do, but, most don't see it.

http://expose2.wordpress.com

 

Fri, 12/02/2011 - 19:01 | 1940262 YesWeKahn
YesWeKahn's picture

Bernanke can fix this. he will sell mortgages in these states.

Fri, 12/02/2011 - 19:03 | 1940264 c'mon man
c&#039;mon man's picture

"..increasingly difficult legal environment in Massachusetts."....lol...

Fri, 12/02/2011 - 19:07 | 1940275 williambanzai7
williambanzai7's picture

They can go kiss Linda Greens ass.

Fri, 12/02/2011 - 19:35 | 1940344 waterhorse
waterhorse's picture

maybe they prefer Jeffrey Stephan's ass.

Fri, 12/02/2011 - 23:21 | 1940742 DaveyJones
DaveyJones's picture

or Sandusky's - screwing our children and their future.

Fri, 12/02/2011 - 20:22 | 1940454 Urban Roman
Urban Roman's picture

Maybe they can subpoena Bogus Assignee. I haven't seen him in a long time.

Fri, 12/02/2011 - 19:07 | 1940281 pauhana
pauhana's picture

I read the headline and started to laugh.  GMAC is getting EXACTLY what it deserves.  Any organization that has to change its name in the vain hope that no one will remember its transgressions probably shouldn't pull this sort of crap.  It only bring up really bad PR issues.

Fri, 12/02/2011 - 19:55 | 1940394 cossack55
cossack55's picture

Similar to the toxic poison Aspartame is now named AMINOSWEET!!!!  Watch your labels.

Fri, 12/02/2011 - 19:08 | 1940282 navy62802
navy62802's picture

GM's housing business is about as lousy as their cars. Figures.

Fri, 12/02/2011 - 19:55 | 1940392 Jumbotron
Jumbotron's picture

The executives at Ally can go suck on a Chevy Volt battery.

FUCK 'EM and watch them explode..fucking cocksuckers !

Fri, 12/02/2011 - 20:53 | 1940510 RafterManFMJ
RafterManFMJ's picture

 

 

I have to laugh openly at those that bought the Chevy Volt - they failed the intelligence test.  All sorts of funny here - I'll buy a frankenstien Obama fiat vehicle (For I am Obama, and I say, let it be done. And it was done. Poorly) and get that taxpayer funded credit that was stolen from them in the first place on top of a bail-out that was also stolen from them.

And sure I'll deal with a company that SCREWED THE LIVING **** out of the bondholders...some of which were poor old grannies.

The only way the Chevy Volt story could improve would be if they all burned up simultaneously and incinerated the morons who bought them.

Fri, 12/02/2011 - 19:11 | 1940289 No One
No One's picture

I am having a really hard time feeling any sympathy for GMAC.

Fri, 12/02/2011 - 19:12 | 1940292 stopcpdotcom
stopcpdotcom's picture

I find the arrogance of organisations like GMAC mind-boggling.

Fri, 12/02/2011 - 19:15 | 1940301 Town Crier
Town Crier's picture

Giving them things they didn't earn leads to a sense of entitlement.

Fri, 12/02/2011 - 19:20 | 1940312 Rainman
Rainman's picture

wtf, they got a whole pocket of get out of fail cards anyway.

Fri, 12/02/2011 - 19:17 | 1940305 Jon Valjon
Jon Valjon's picture

 

“This change is necessary due to the complexity of transacting business in an increasingly difficult legal environment in Massachusetts.”

Or, shall we say, “It’s difficult for us to perform transactions legally.”

 

Fri, 12/02/2011 - 19:25 | 1940323 SilverRhino
SilverRhino's picture

“This change is necessary due to the complexity   of transacting business in an increasingly difficult legal environment in Massachusetts.”

 

Translation: We can't commit fraud with impunity anymore, so we won't do business in your state. 

Fri, 12/02/2011 - 19:18 | 1940307 swmnguy
swmnguy's picture

Ally Bank wants me to refinance my house with them.  I've got 55% equity, and a 4.625% 30-yr. with my local Credit Union.  And a $60,000 HELOC, $0 balance, at 3.75%.  So naturally I'm quite open to the idea of putting my family's security in the hands of a bunch of greasy low-life forgers.  Seriously, I'd rather refinance with Vinny The Weasel.

Fri, 12/02/2011 - 19:42 | 1940363 Kina
Kina's picture

I'd rather refinance with Vinny The Weasel.

 

GS put Vinny out of business long ago.

Fri, 12/02/2011 - 19:58 | 1940398 cossack55
cossack55's picture

Vinny was too moral and filled with scruples.  Vinny also was not a lawyer.

Fri, 12/02/2011 - 20:18 | 1940450 RobD
RobD's picture

And he most likely had a hot chick and a cool leather jacket.

Fri, 12/02/2011 - 22:14 | 1940629 sagerxx
sagerxx's picture

Actually, Vinny is a Senior VP in GMAC's Compliance department.

Fri, 12/02/2011 - 23:25 | 1940749 DaveyJones
DaveyJones's picture

But Vinny's car still runs

Fri, 12/02/2011 - 19:21 | 1940317 Whoa Dammit
Whoa Dammit's picture

Before the bubble, Georgia passed very strict laws against predatory lending. Lenders screamed, lenders pitched fits, some quit writing loans in the state. But guess what? Other lenders picked up the slack, and there was no problem getting a loan.

Then we had a change of governor, the state laws were repealed, followed by federal interstate mortgage laws being enacted, etc.

And Georgia has since been consisently one of the top 5 to 10 states for foreclosures. 

Fri, 12/02/2011 - 19:44 | 1940368 waterhorse
waterhorse's picture

I remember 'Big Insurance' threatening if they didn't get their way on one of the propositions here in California, they would "never write a policy in California again."  Didn't seem to happen.  Greed won out over bluster. 

Fri, 12/02/2011 - 19:25 | 1940324 midgetrannyporn
midgetrannyporn's picture

GM, GE, etc., are finance companies pretending to manufacture something. We still have way too much of that type of scumbaggery.

Fri, 12/02/2011 - 19:28 | 1940326 Lord Welligton
Lord Welligton's picture

By the sword we seek peace, but peace only under liberty

Well said Massachusetts.

Fri, 12/02/2011 - 19:28 | 1940329 lolmao500
lolmao500's picture

Those scumbags can move to Europe or China if they are not happy and go plunder some other sheeple.

Sat, 12/03/2011 - 11:26 | 1941422 Unholy Dalliance
Unholy Dalliance's picture

Hey, don't dump your Yankee rubbish on us. We've up to our eyes in home-grown crap, thank you very much.

Fri, 12/02/2011 - 19:30 | 1940332 lolmao500
lolmao500's picture

The Massachusetts civil suit, filed in Superior Court in the state's Suffolk County, alleges that the banks' foreclosure practices were unlawful and deceptive.

Well they don't have the note to 80%+ of those mortgages, so hell yeah it's unlawful.

Fri, 12/02/2011 - 19:43 | 1940365 NotApplicable
NotApplicable's picture

Since when do laws mean anything? They are merely weapons the politically connected use to beat up their enemies. Or in this case, to make good election-time theater, reviving the facade of the public servant.

Besides, how does a class-action suit clean up the broken title mess? Answer? It doesn't.

Fri, 12/02/2011 - 19:32 | 1940335 Manny
Manny's picture

Thats the problem. If you toe the line you get rewarded. Like the AG of Iowa who is leading this joint settlement effort is seeing his election coffers swell from Wall Street's largesse.

But if you try to enforce the law, every ploy is used to handicap the enforcer and prevent laws from being enforced.

Just another tantrum by the spolied financial companies.

Fri, 12/02/2011 - 19:37 | 1940349 non_anon
non_anon's picture

ha ha, tit for tat

Fri, 12/02/2011 - 19:38 | 1940351 onarga74
onarga74's picture

Around 3500 banker folks went to jail during the S&L crisis.  I think there are like 3 or so doing time now.  All because of a sub-paragraph in Grahman-Leach-Bliley that said only the really bad bankers go to jail. I think we have all 3 locked up. The plain ordinary bad bankers just get bonuses.

http://us.ft.com/ftgateway/superpage.ft?news_id=fto090320091244573891

 

Fri, 12/02/2011 - 22:13 | 1940628 earleflorida
earleflorida's picture

by the way, now that you mentioned the three amigo's - where are they today?

gramm's [cracker], [blood] leach's, and bliley's [bile],... what a losing trifecta!

Sat, 12/03/2011 - 09:01 | 1941263 flattrader
flattrader's picture

onarga74,

Can you provide a citation to the subparagraph that you believe is the "culprit"?

I've wondered about this myself...something about proving criminal intent that is the barrier to prosecution?

Fri, 12/02/2011 - 19:44 | 1940369 Bolweevil
Bolweevil's picture

fight!

Fri, 12/02/2011 - 19:46 | 1940370 PaperBear
PaperBear's picture

Did GMAC just say 'f**k you Massachusetts' ?

Fri, 12/02/2011 - 19:48 | 1940374 LeBalance
LeBalance's picture

interesting...so if you make a case, certain elements of BANKS will just go away?

lol.

US Government is such an element.

let's make a case.

"When in the course of human events...."

Fri, 12/02/2011 - 19:50 | 1940378 RunningMan
RunningMan's picture

These types of tantrums worked well in the easy credit years. No one wanted to be left out during the run up, and states feared losing any kick from the housing boom. We are in a different environment now... and the motivation is different. Even without Ally/GMAC, does MA not have ample supply of mortgages from the other large lenders (Chase, Citi, BAC, etc.)? I think so. I suspect GMAC may be misplaying this politically and legally. We still have excess capacity in the still anemic housing market. It took three years for even originators to finally come to grips that the market wasn't going to come surging back to its peak volumes.

This whole crisis has been a lesson on just how long it takes companies - and the country - to realize what has been happening. Even our politicians are only now realizing that something (or everything) is changing. GMAC shouldn't even exist anymore, so games like this are just a sideshow for a main event, which even I'm no longer sure about in terms of exact timing or form.

Sat, 12/03/2011 - 01:04 | 1940941 ghostfaceinvestah
ghostfaceinvestah's picture

To that point, they are all just brokers for the govt now anyway (FHA/Fannie/Freddie), pimping 30 year fixed rate mortgages that you and I guarantee, so no one will miss them except the brokers who couldn't get signed on with anyone else.

Fri, 12/02/2011 - 19:52 | 1940385 Let them eat iPads
Let them eat iPads's picture

The crybabies are taking their ball and going home.

Home being the depths of hell, of course.

Fri, 12/02/2011 - 21:01 | 1940524 chunga
chunga's picture

Lawyers will be waiting there for them to sue their sorry asses. Fuck GMAC.

Fri, 12/02/2011 - 21:55 | 1940606 AmericanBulldog77
AmericanBulldog77's picture

CALLING ALL LAWYERS, JUDGES Gov't OFFICIALS W/ A CONSCIENCE in MA and all across America w/ NO BANK TIES. Where are YOU?

Follow the rules of law and Eliminate this puss sucking scurge on our GREAT COUNTRY.

Fri, 12/02/2011 - 22:17 | 1940633 chunga
chunga's picture

I can tell lawyer jokes with the best of 'em.

But - you know damn well GMAC won't be sending in pimple-faced creampuff lawyers on this deal.

You've got Glen Russell (Ibanez) in MA and George Babcock (radio-active Bucci) in neighboring RI. Those dudes aren't afraid to mix it up with the TBTF crowd and they don't play nice.

Game on!

 

Fri, 12/02/2011 - 19:58 | 1940387 Jumbotron
Jumbotron's picture

FUCK 'EM !

Call their fucking bluff and then pass legislation banning Ally from ever doing business again in the state of Massachusetts.

Those whores will be so desperate to suck the money dick they'll  beg to be ass-raped to come back to MA.

Again, FUCK 'EM !  HARD !

Sat, 12/03/2011 - 04:54 | 1941172 Deo vindice
Deo vindice's picture

If you took all the vulgarity out of your comment ... you'd still have very little to say.

Fri, 12/02/2011 - 19:55 | 1940390 Wiltel1
Wiltel1's picture

Let me see if I understand this. GMAC is saying they will not write mortgages where they are going to be required to do it legally.

Fri, 12/02/2011 - 19:58 | 1940400 waterhorse
waterhorse's picture

Why is conducting business in a lawful manner a problem for them?  Didn't they just assure everyone that all the robo-signing and other fraud has been "fixed"?

Fri, 12/02/2011 - 22:17 | 1940632 earleflorida
earleflorida's picture

if the MSM says so,... i guess it's true

Fri, 12/02/2011 - 21:55 | 1940605 Jim in MN
Jim in MN's picture

Precisely.  It is a crystallized version of what the VampireSquidLeviathan banks are doing globally. 

Which is why GMAC will be ordered to STFU and GBTW.  They aren't big enough to play this out.

Fri, 12/02/2011 - 19:56 | 1940395 waterhorse
waterhorse's picture

GMAC:  Take your fraudulant business practices away from all the states.  No one will miss you.  Crash and burn!

Fri, 12/02/2011 - 19:56 | 1940396 f16hoser
f16hoser's picture

Well there you have it. FUCK YOU GMAC! How much TARP money did GMAC get? I know they took something.....Bastards.

 

Sat, 12/03/2011 - 01:06 | 1940945 ghostfaceinvestah
ghostfaceinvestah's picture

http://www.nytimes.com/2010/03/11/business/11tarp.html

 

A Congressional panel, in a report to be released Thursday, questioned the need for the Treasury Department’s $17.2 billion bailout of GMAC as the company dealt with the collapsing mortgage market in 2008 and 2009.

The panel, the Congressional Oversight Panel for the Troubled Asset Relief Program, raised questions about the Bush administration’s initial decision to rescue GMAC in December 2008.

The government “might have been able” to arrange a strategic bankruptcy for GMAC, as it did for General Motors and Chrysler, preserving its automotive lending arm while dealing with the mortgage lending operations that brought it down, the panel found.

In one passage, the report concluded that GMAC became “one of the five largest wards” of the government even though it was “a company that apparently posed no systemic risk to the financial system, that did not seem to be too big to fail, too interconnected to fail, or indeed, of any systemic significance.”

Fri, 12/02/2011 - 19:58 | 1940397 Catullus
Catullus's picture

I like that commercial where they give money to some honest person on the street and they don't take a penny of it. And then they ask how much your bank is taking in fees. But the only way Ally doesn't charge fees is by taking your money and loaning it back out. Their dipshits in their marketing department have apparently never heard of fractional reserve banking. What a crock of donkey shit.

Fri, 12/02/2011 - 20:06 | 1940408 Hman
Hman's picture

Finally something good.

Fri, 12/02/2011 - 20:06 | 1940412 luna_man
luna_man's picture

 

YEAH!...who's next to 'high tail out of dodge"??...

I LIKE IT!!

Fri, 12/02/2011 - 20:07 | 1940416 wannabe traitor
wannabe traitor's picture

wow! Now if we can get all the other states to follow suit, we might actually have something here.

Fri, 12/02/2011 - 20:13 | 1940431 topcallingtroll
topcallingtroll's picture

Daily Kos is also on this issue today.

There are a few areas where socialists turds (and I mean that in the nicest way) and the Enlightened Ones can find common ground.

We should try to become acquainted with denizens of Huff Post, Daily Koss, and other leftist types that also hate crony capitalists.

If we develop temporary alliances and focus our efforts on the common enemy.............

Fri, 12/02/2011 - 20:37 | 1940484 midgetrannyporn
midgetrannyporn's picture

Temporary? Why "we" are already here. ;*)

Fri, 12/02/2011 - 22:54 | 1940696 weinerdog43
weinerdog43's picture

Fuck you mr. stormfront.  Intelligent people avoid fascist scum like you. 

Sat, 12/03/2011 - 11:20 | 1941409 Arthor Bearing
Arthor Bearing's picture

[Vulgarity] [Absurd Implication of Racism] [Assumption of superior intelligence] [The word "fascist"].

You followed the annoying angry liberal comment board form perfectly! 

Sat, 12/03/2011 - 11:23 | 1941416 Alex Kintner
Alex Kintner's picture

Here's Daily Kos link for the GMAC story.
http://www.dailykos.com/story/2011/12/02/1041867/-Banksters-warn-Massach...

I say Daily Kos is now split 50-50 between Zombie Dem followers and Pissed Off Progressives that realize Obama is just another Wall St puppet. There are constant pie wars between these two factions.

Today's example:
Yves Smith: "Corrupt Obama Administration Pressuring NY AG to Support Mortgage Whitewash"
http://www.dailykos.com/story/2011/08/22/1009426/-Yves-Smith:-Corrupt-Ob...

Fri, 12/02/2011 - 20:14 | 1940433 jez
jez's picture

GMAC better figure out a way to make money doing something besides lending . . .

================================

I wonder if they have ever considered going into automobile manufacture?

Nah, forget it. They'd be lousy at that too.

Fri, 12/02/2011 - 20:23 | 1940459 Elliott Eldrich
Elliott Eldrich's picture

Dry, cynical, has a good beat, easy to laugh to. I give it a nine.

Fri, 12/02/2011 - 20:26 | 1940466 GCT
GCT's picture

GMAC got over 100 billion from Bush and Obama!!  They are getting 15k per Volt.  Funny how we continue to get screwed by them.  Let them burn in flames. Oh wait the volts are causing your house to go down in flames.  Maybe we ought to have their finance company use Volts!

Fri, 12/02/2011 - 20:35 | 1940481 Piranhanoia
Piranhanoia's picture

Watch all 5 pull out. The swine stop foreclosing in every state as soon as their attorneys are required to swear to the truth of what they present to the court.  That is all it takes,  following the law that is 400 years old. 

Sun, 12/04/2011 - 11:55 | 1943868 FreeNewEnergy
FreeNewEnergy's picture

"...  as soon as their attorneys are required to swear to the truth of what they present to the court."

Yep, that is exactly what happened in New York. Foreclosure mills are DOA. My own FC is now 18 months old and dad in the water, complete with robo-signed assignment, and false statement over who holds the note. I'm letting BofA slowly twist in the wind. Might file federal fraud case against them since there are very few attorneys in the state that will represent them. Ought to be a slam dunk (oh, didn't somebody say that about Iraq?) Never mind.

Fri, 12/02/2011 - 20:38 | 1940489 Flounder
Flounder's picture

GM RESCAP is still a festering wound on our economy which should have been excised years ago.  Shame on GM.

"Fitch now rates ResCap at triple-C, eight steps below investment-grade territory. Fitch's higher double-B rating on Ally is unchanged"

Fitch cuts Ally's ResCap on mortgage performance

http://www.marketwatch.com/story/fitch-cuts-allys-rescap-on-mortgage-per...

 

Fri, 12/02/2011 - 20:52 | 1940511 slewie the pi-rat
slewie the pi-rat's picture

no loans to same-sex couples,now, either...

Fri, 12/02/2011 - 22:03 | 1940598 indio007
indio007's picture

Sucks to be GMAC. The housing market in Massachusetts (as well as employment) are doing quite well. In fact in Boston they only flattened post bubble and didn't fall much if at all. GMAC can go away we don't need them. Self-important assholes they are anyway. 

 

They'll be back anyway. For trial.

Fri, 12/02/2011 - 21:50 | 1940600 celticgold
celticgold's picture

did the lights just go out in massachusetts?  voltage problem?

Fri, 12/02/2011 - 21:52 | 1940602 Jim in MN
Jim in MN's picture

Uh-oh, better walk this one back, might wake up the sheeple.

Bet GMAC gets a friendly visit from GoldmanMorganCo. and quietly backs down. I'd lay a fiver on it if there was any uncorrupted market in which to do so.  But there isn't.

Fri, 12/02/2011 - 21:52 | 1940603 azusgm
azusgm's picture

Mass is a safer and better place tonight.

Fri, 12/02/2011 - 22:00 | 1940612 Maximilien Robe...
Maximilien Robespierre's picture

Do you love your bank?  Do you?  "Adding comments to this video have been disabled"...

http://www.youtube.com/watch?v=4zMQI9iO_IE

 

 

Sat, 12/03/2011 - 11:32 | 1941428 Alex Kintner
Alex Kintner's picture

Ally loves its customers -- doggie style. LOL.

Fri, 12/02/2011 - 22:07 | 1940624 Pancho Villa
Pancho Villa's picture

"Well! If you won't let us cheat, then we'll just take our business elsewhere!"

Good riddance!

Fri, 12/02/2011 - 22:32 | 1940650 Miss Expectations
Miss Expectations's picture

"It also sends a signal to Massachusetts and other states that if you make it difficult for lenders to act they will take their business elsewhere," Mr. Cecala said of GMAC's decision.  

Insert angry gypsy photo here--------------->

Fri, 12/02/2011 - 22:33 | 1940653 markar
markar's picture

Best thing that could happen in MA is for all the big banks being sued to pull out of the mortgage lending business. Great opportunity to charter a state bank ala ND to lend w/o usury. F(**&k em all.

Fri, 12/02/2011 - 22:47 | 1940675 Citizen Ken
Citizen Ken's picture

What, are their lawyers pussies that can't deal with the "increasingly difficult legal environment in Massachusetts"?  Why is it increasingly so?  Are there new laws being passed that their counsel can't understand?

"break the law until for some crazy reason you can no longer break the law." 

I don't think it's just the banks doing it, but that quote does remind me of the clause in the CDARS contract that made me barf all over it.

Fri, 12/02/2011 - 23:21 | 1940721 williambanzai7
williambanzai7's picture

In a statement GMAC said it "has taken this action because recent developments have led mortgage lending in Massachusetts to no longer be viable."

Don't you love how the words 'legally in compliance' have been transmogrified into: no longer viable.

I guess this means doing the recording paperwork legally and properly and maintaining proper records is not a profitable activity for them.

They are, however, happy to exchange buckets of cash for buckets of MERS crap.

Bailout whores!

ALLY

Fri, 12/02/2011 - 23:39 | 1940766 chunga
chunga's picture

MA residents! Run for your lives! You are doomed without GMAC! There is NO hope!

GMAC...ooops..."Ally" will endeavor to increase their market share in states like Florida where they don't even bother pretending to follow any laws.

Pam Bondi, the bimbo FL AG (under the supervision of Gubna Rick Scott of Medicare Fraud infamy) just fired their two lead foreclosure fraud investigators.

Why? Apparently, AG "intelligence" has determined that FL has been decimated by the scourge of "time-share fraud". Pam has been noticing an insurgency of time share bandits running rough-shod over the entire state and has been forced to reallocate resources????? WTF

Sat, 12/03/2011 - 02:54 | 1941086 Jumbotron
Jumbotron's picture

Yeah, we are full of whores like Rick Scott here in Florida.

That fucking pill mill whore and Medicare Thief has been crowing about being proud to sign the new Pill Mill Bill that he opposed until it became obvious that the Legislature was going to ram it down his throat.

There has been more oxycodone prescribed here in Florida than all of America combined. (I'm sure there has been a decrease since Rush Limbaugh stopped being an oxy-addict).

And since the drug industry (both legal and illegal) is funded by and launders their money through the banks, that makes Rick Scott a bankers' whore as well.

I will not be surprised at all to see that cocksucker welcome even more business from Ally (GMAC)

Sat, 12/03/2011 - 00:21 | 1940867 Maximilien Robe...
Maximilien Robespierre's picture

Bailout Whores!  Bring out the robosigners WB7!

Sat, 12/03/2011 - 11:59 | 1941465 Iwanttoknow
Iwanttoknow's picture

Bank whore.

Fri, 12/02/2011 - 23:46 | 1940791 Steve in Greensboro
Steve in Greensboro's picture

Dear Massachusetts, F-ck you, you bunch of commies. F-ck you, the entire Kennedy family, Elizabeth Warren and the entire faculty of Harvard University. Good luck borrowing money for your mortgages you commies. Have anice day.

Sat, 12/03/2011 - 00:58 | 1940931 ghostfaceinvestah
ghostfaceinvestah's picture

What a surprise from Mike Carpenter, another loser brought up in the GE culture.

Sat, 12/03/2011 - 17:02 | 1941095 c'mon man
c&#039;mon man's picture

I remember when Blago had a press conference supporting factory workers who were out of work during the credit crisis. He said the State of Illinois will not do business with BOA...he was in handcuffs and dragged out of his home 13 hours later.....

Sat, 12/03/2011 - 03:45 | 1941141 terryfuckwit
terryfuckwit's picture

Oh deary me if massachussets gets its lenders under control it cound end up a real basket case like Sweden

http://www.bloomberg.com/news/2011-12-02/swedish-bonds-safer-than-german...

Sat, 12/03/2011 - 04:19 | 1941159 hidingfromhelis
hidingfromhelis's picture

Yeah, complying with existing law is such an undue burden.  I'm cynical (realistic) enough to realize that there's going to be a lot of money and not so public pressure put on anyone that dares to rock the boat to save borrowing opportunities for homeowners.  Cue multiple asshat politicians from both parties, one arguing about excess regulation being the problem that's preventing a good business from being able to loan in the "free" market :cough, cough: and the other arguing that it all needs to be GSE backed to solve the problem.

Sat, 12/03/2011 - 05:53 | 1941195 falga
falga's picture

People bail out banks then banks foreclose homes of people!
Something inherently wrong here

Sat, 12/03/2011 - 08:48 | 1941255 moneymutt
moneymutt's picture

When Californians passes car insurance reform Proposition 103 in the 80s, to regulate industries that had exemptions to anti trust laws, those insurance companies screamed bloody murder and said they would leave the state. Mean, my God, the prop made them open their books and the govt had power to reduce their profits! Anathema to business, what business could survive such meddling and regulation! How horrible and mean could the Valironian citizens be?! They insisted they were going to take their marbles and go home, and leave Calif without any precious private insurance cartels, without any choice!

Notice what happened? There are still insurance companies offering car insurance in Cali, consumers still have all kinds of choice, and relative to other states Californian car insurance premiums have gone way done. Most honest, hard working businesses are doing just fine in the state. They don't have to worry about competition stealing customers with fraudulent faux insurance, they get a steady stable income, they compete on rates and on service, value. they don't make super parasitic profits from their insurance cartels anymore, at least not Cali, but they happily do business in the state, they didnt leave, they still make lots of money there and Cali consumer isaves lots of money. http://www.consumerwatchdog.org/resources/15years_Prop103.pdf

When big banks or big businesses scream they can't make money following basic ordinary laws that protect consumers and say they wil leave the state or country, just know its the wicked witch shrieking she's melting...get over it. We all have to deal with declining wages, increased cost of healthcare, education, we have hustle to get a job that used to be waiting for a HS grad that wanted one. We have to obey drug laws, tax laws etc or end up in prison. I think corporate persons can do the same and survive.

Sat, 12/03/2011 - 09:09 | 1941266 JoeStocks
JoeStocks's picture

Massachusetts Says "Bite Me" To Banks

Otherwise known as the Martha Coakley, Attorney General of the Commonwealth of Massachusetts re-election campaign.

I agree with the BAC spokesman;

Bank of America spokesman Lawrence Grayson said the firm believes "that collaborative resolution rather than continued litigation will most quickly heal the housing market and help drive economic recovery."

My impression is that probably 99% of foreclosures are just in that the homeowners did not pay the mortgage they agreed to pay. Those that have been legally harmed should be suing individually for damages.

Sat, 12/03/2011 - 09:51 | 1941310 SofaPapa
SofaPapa's picture

Beautiful.  A thief steals $10,000 and then says, "Now why can't we sit down and reasonably discuss a fair sharing agreement.  Maybe you get 5 and I get 5?"

 

Plus, any post that has a sentence, "I agree with the BAC spokesman"... come on!!!  Do you actually want to be taken seriously?

Sat, 12/03/2011 - 12:00 | 1941466 Iwanttoknow
Iwanttoknow's picture

another bank whore.

Sat, 12/03/2011 - 10:12 | 1941335 Gameon
Gameon's picture

Is there anybody out there who:

Made all their mortgage payments and is being froeclosed upon? ANYBODY?  No pay; No stay and Ms Coakley is playing her political games for re election. Sorry children these are the facts of life.

Sat, 12/03/2011 - 10:17 | 1941340 Kaiser Sousa
Kaiser Sousa's picture

bailed out bitch made bank...

fuck those mother fuckers...every dumb ass mother fucker with a car loan or any other should say...

"Physche, i aint payin shit - bitch"!!!!

Sat, 12/03/2011 - 10:21 | 1941345 Kaiser Sousa
Kaiser Sousa's picture

and to debt slaves that take exception to resisting the rule of the bankers....

fuck u too...

Sat, 12/03/2011 - 10:26 | 1941343 singlemalt
singlemalt's picture

Give me a second while I don my flame proof suit...ok ready now.

I am going to post something that evidently goes against the grain here.  I like piling on as much as the next guy, but there are some salient facts, I believe, that are missing from this discussion.   Frankly, the original article seems like a bunch of hyperbole and uneducated or intentional misleading to me.  Let me first say that I don't work for Ally/GMAC/Rescap, nor do I have an equity position in the company, nor am I one of their customers/dupes.

I RTFPR (http://media.ally.com/index.php?s=43&item=508) and saw this: "will cease purchasing new mortgage loans in the Commonwealth of Massachusetts that are originated by correspondent lenders and wholesale brokers."

First point which I hope is obvious to everyone here, there are several ways that loan servicing companies acquire loans to service:

1. Originating them themselves (retail)

2. Via brokers (wholesale, servicer lends and underwrites)

3. Via correspondent (wholesale, coorespondent lends and underwrites, then sells to servicer later)

In this case, GMAC is ceasing to acquire loans via 2 and 3, but did not say they would stop originating the loans themselves.  It also just so happens that loans via #1 are the most profitable to the servicer.

Talk about selective sound biting!  Tyler wrote:

In an email sent out today, GMAC Bank said it would "no longer accept new locks for properties located in the Commonwealth of Massachusetts."

True, but he specifically did not quote the point that this was addressed to correspondents only.  In the PR, it is made clear the brokers are being cut off too.

My apologies for the uncomfortable facts, but from what I read, I see nothing that indicates the GMAC is exiting the loan origination business in Mass., just the wholesale business.  This does not make their action any more palatable, of course, but the inflammatory, and factually incorrect, nature of this posting just grated on me a bit and forced me to sit down and type this up.

 

Flame on.

Sat, 12/03/2011 - 10:46 | 1941374 chunga
Sat, 12/03/2011 - 11:00 | 1941387 MIDTOWN
MIDTOWN's picture

The Solution is simple.  Massachusetts should declare all existing mortgage loans from boycotting banks fully (non-qualifying) assumable regardless of the wording in the documents.

Sat, 12/03/2011 - 10:57 | 1941389 dcb
dcb's picture

Horrors,

wow getting rid of an institution that does massive fraud, making a business opportunity for local banks, a bonus for the state. Bad for the elected officials cause they may loose lobby money. Guess it says they aren't willing to operate with out engaging in fraud. Oh, like all of wall street

Sat, 12/03/2011 - 11:40 | 1941442 f16hoser
f16hoser's picture

Go to SGTREPORT.com and listen to Ann Barnharts audio interview. That has all you need to know for right now. Oh yeah, get out of paper NOW!

Sat, 12/03/2011 - 12:10 | 1941478 banksterhater
banksterhater's picture

GMAC is doing the right thing! FUCK MASS.! The average time in default or foreclosure now on 2 mil mortgages is 680 days! Most haven't paid a dime for 2 years, some are now 5 years FREE SQUATTING! Fuck all you liar-loaner-windfall retail consumers.

Sun, 12/04/2011 - 00:15 | 1943100 Grand Supercycle
Grand Supercycle's picture

SP500 bull vs bear battle reverts to bearish bias after price action on Friday and more downside expected.

My long term indicators have continued to warn of US Dollar strength and EURO weakness and these signals have increased since 2009. The overdue dollar rally should be substantial.

http://stockmarket618.wordpress.com

Tue, 12/06/2011 - 01:15 | 1949876 jamalogist
jamalogist's picture

Singlemalt -- THANK YOU.  I actually had to register to post the same feedback.  That announcement screen shot is clearly from a Correspondent rate sheet.  Meaning, nothing precluding them from originating loans where GMAC/Ally's name is on the closing docs.  This only affects where brokers or correspondents send their loans through the wholesale channel -- a decision that no one in the shoes of a borrower would ever be aware of, with respect to where their loan is ultimately going, or that they're transacting with Ally or not.  

Also, I'm not exactly defending the sloppy robo-signing, but I'm a bit shocked by the number of "Great, in fact, GMAC should just stop writing mortgages everywhere!" comments.  If we wanted that, we had our chance.  Instead, we chose to bail them out.  And it is the ONLY financial institution to not have repaid any of it (sorry, wikipedia was the fastest thing to cite.. see table towards the end  http://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program  

So now that we have chosen to provide federal government support for continuing its operations, this seems to be a proxy war bickering between federal gov't, and the state of Mass.  

 

Wed, 12/21/2011 - 09:46 | 2000679 split4to1
split4to1's picture

so many of this litigious jerks abound what are ya gonna do in toledo  ohio http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57914393

Do NOT follow this link or you will be banned from the site!