Ohio became the first state to level a civil fraud suit against a major servicer, claiming the company misled courts in hundreds of foreclosure cases by filing fraudulent affidavits.

Attorney General Richard Cordray on Wednesday announced the suit against GMAC Mortgage and its parent Ally Financial, as well as GMAC employee Jeffrey Stephan, whose deposition brought to light the practice of "robo-signing" affidavits without verifying the information or having a notary present.

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