| Documents obtained by ProPublica -- government audit reports of GMAC, the country's fifth-largest mortgage servicer -- provide the first detailed look at the program's oversight. They show that the company operated with almost no oversight for the program's first eight months. When auditors did finally conduct a major review more than a year into the program, they found that GMAC had seriously mishandled many loan modifications -- miscalculating homeowner income in more than 80 percent of audited cases, for example. Yet, GMAC suffered no penalty and hasn't reversed a single foreclosure as a result of a government audit... The documents also reveal that government auditors signed off on GMAC loan-modification denials that appear to violate the program's own rules, calling into question the rigor and competence of the reviews. Some of the auditors' mistakes are "appalling," s |
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At www.propublica.org
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