Six States Sue GMAC: The states, including...
From Times Staff and Wire Reports
Six States Sue GMAC: The states, including California, accused GMAC Mortgage Corp., one of the nation’s largest mortgage lenders, of overcharging homeowners by at least $30 million. The lawsuit, filed in U.S. District Court in Manhattan, claims that the General Motors Corp. subsidiary is making borrowers cough up more than is allowed by law to put into mortgage escrow accounts to protect the lender against defaults. It was brought by the attorneys general of New York, California, Iowa, Massachusetts, Minnesota and Texas. A GMAC spokesman could not immediately be reached for comment.
