Lawsuit filed against financial groups, including GMAC - KWWL - Eastern Iowa Breaking News, Weather, Closings

Lawsuit filed against financial groups, including GMAC

COLUMBUS, OH. (AP)-- Ohio Attorney General Richard Cordray is filing a lawsuit against Ally Financial Inc. and its GMAC Mortgage division, alleging fraud that could involve hundreds of foreclosures in the state.

Cordray is asking for civil penalties of up to $25,000 for every violation of the state's consumer laws.  He says the lawsuit is being filed Wednesday in Lucas County court in Toledo.

Cordray says he has asked for meetings with four other banks:  JPMorgan, Bank of America, Wells Fargo and Citigroup.  He hopes to find out more about their foreclosure processes.

GMAC Mortgage and two other companies have halted foreclosures in 23 states, including Ohio, after evidence surfaced that employees or outside lawyers signed documents without reading them or filed inaccurate paperwork.

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