Ally Bank and the Convenient Foreclosure Freeze

Ally Financial, the mortgage subsidiary of taxpayer-owned GMAC, recently decided to halt all foreclosures for the foreseeable future. Apparently, some lazy (or crooked) employees at Ally signed hundreds or thousands of documents relating to foreclosures without reviewing everything on a case by case basis, particularly in Florida. Now most states are jumping on board, ordering a halt to foreclosures everywhere.

The skeptic in me wonders whether this isn't all too convenient. A mortgage company that is extremely friendly to the Obama administration blows the whistle on itself and then orders a halt to all foreclosures. I will be following to see if this is temporary until they make sure Ally has removed the responsible employees or whether this ends up resulting in thousands of taxpayer funded bailouts, which is precisely what Obama wants.