Alain Sherter from CBS Interactive Business Network posted a commentary on the bnet blog weighing on the GMAC/Ally Affidavit fiasco.
The Ally Financial scandal highlights a fundamental error in how this country is dealing with the foreclosure crisis: While Wall Street banks are allowed to indefinitely put off recognizing mortgage-related losses, the legal machinery used to seize people’s homes is on automatic pilot.
“What GMAC has been doing with affidavits … is no different from what anyone else has been doing in the mortgage servicing business,” said O. Max Gardner III, a consumer bankruptcy attorney. “This is business as usual for the mortgage servicing industry. GMAC just got caught,” he said.