Last week officials at GMAC Mortgage, a division of Ally Financial, Inc., announced that they are halting evictions of foreclosed borrowers and are halting REO sales in 23 states. GMAC announced it was taking this action as a result of the discovery that affidavits filed as a part of foreclosure records may have been signed by a person(s) who did not confirm the facts stated in the affidavit. The company also said that some of the affidavits may not have been properly notarized.

The Attorneys General in Connecticut and California have ordered GMAC to halt foreclosure activities in their states. News reports indicate that state attorneys general in several other states are investigating or are planning to inquire into GMAC foreclosure practices.

The statements made and actions undertaken by GMAC, together with state investigations underway, require that Old Republic National Title Insurance Company and its affiliated underwriters exercise caution when dealing with properties which have been the subject of a foreclosure by GMAC. Should you have a transaction involving Ally Financial, Ally Bank, or GMAC, please contact the Underwriting Department before issuing any commitment to insure.  If you have recently issued a commitment involving any of these lenders please contact the Underwriting Department immediately for further discussion and guidance.