More Bailout Money For GMAC "Bank": 3.5 Billion

Protip: Don't do business with allybank. They're simply a storefront for GMAC.

I used to run land title back in the early and middle '00s. On some of the foreclosure titles I did, I was astounded to see ditech.com dba GAMC Mortgage Corp give a second mortgage on a property. This second mortgage was generally for 80% of the property's assessed value. The first mortgage was generally one of two things 1) either for at least 125% of the home's value or 2) a legitimate Grade A mortgage that had been paid down to less than 80% of the value.

Either scenario demonstrates that GMAC mortgage brokers were idiots. There was no way in heck they were going to get all their money back on that second note, even when property valuations were still going up. I guess they simply wanted to take the promissory note/mortgage so they could go out and sell it as a mortgage backed security. I don't know.

I was even more astounded to hear in the Fall of '08 that the federal government was going to allow our not-yet-ready-for-retail-lending players to become an FDIC-insured institution. I remember thinking back then, Well, this mess is far from over if we're not going to honestly address GMAC's issues head on.

It's just absolutely mind-boggling what the bankers and the people on Wall Street have gotten away with and what they're continuing to get away with.

in reference to: The Coming Economic Depression: More Bailout Money For GMAC "Bank":3.5 Billion (view on Google Sidewiki)