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Ally Financial Inc.

FHFA Reaches $885 Million Agreement With Credit Suisse Over MBS


The Federal Housing Finance Agency (FHFA), as conservator of Fannie Mae and Freddie Mac, announced that it has reached a settlement with Credit Suisse, related companies and specifically named individuals for $885 million. The settlement resolves all claims in the lawsuit FHFA v. Credit Suisse, et al. as well as all claims against the Credit Suisse defendant in FHFA v. Ally Financial Inc., et al. alleging violations of federal and state securities laws in connection with private-label mortgage-backed securities (PLS) purchased by Fannie Mae and Freddie Mac during 2005-2007.Click to continue

FHFA Dismisses Claims Against Ally Financial


Ally Financial Inc. has reached settlements with the Federal Housing Finance Agency (FHFA) and the Federal Deposit Insurance Corporation (FDIC) for all pending litigation and related claims. The settlements require pending litigation against Ally to be dismissed, and the FHFA and the FDIC released claims will no longer be exceptions to the third-party releases related to the Residential Capital LLC (ResCap) settlement. Ally expects to record a charge of $170 million in the third quarter in connection with the FHFA and the FDIC settlements.Click to continue

Ally Financial to Rescue ResCap From Chapter 11


Ally Financial Inc. has announced that it has entered into a comprehensive plan support agreement with the Residential Capital LLC estate and its major creditors to support a Chapter 11 plan in ResCap's Chapter 11 cases.  The plan will settle all existing and potential claims between Ally and ResCap and all potential claims held by third parties related to ResCap that could be brought against Ally and subsidiaries that are not Chapter 11 debtors, except for securities claims by the Federal Housing Finance Agency (FHFA) and the Federal Deposit Insurance Corporation (FDIC), as Click to continue

Ally Bank to Sell Business Lending Mortgage Operation to Walter Investment

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Ally Bank, the direct banking subsidiary of Ally Financial Inc., has announced that it has reached an agreement to sell its Business Lending mortgage operation to Walter Investment Management Corporation. Ally Bank announced that it would pursue alternatives for the Business Lending operation in the fourth quarter of 2012, and the transaction is expected to close on Feb. 28, 2013. Business Lending is comprised of the Bank's correspondent and wholesale broker origination channels and operations.Click to continue

Fed Releases Servicing Action Plans for Citigroup and HSBC


The Federal Reserve Board (FRB) has released action plans for Citigroup and HSBC Finance Corporation to correct deficiencies in residential mortgage loan servicing and foreclosure processing. It also released the engagement letter between Ally Financial Inc.Click to continue

Ally Financial Mortgage Subsidiary ResCap Files for Chapter 11


Residential Capital LLC (ResCap), a subsidiary of Ally Financial Inc., has announced that its Board of Directors voted to file for Chapter 11 protection along with 50 of its subsidiaries. ResCap’s mortgage origination, servicing and other business activities, conducted through its subsidiaries, including GMAC Mortgage, will continue to operate as the Chapter 11 proceeds. Undergoing the Chapter 11 process will:Click to continue

Ally Securities to Exit its Mortgage-Related Broker Dealer Activities


On the heels of news that Ally Financial Inc. was making a $134 million dividend payment to the U.S. Department of the Treasury to pay back the government from its bailout, the firm has announced that Ally Securities, the broker dealer subsidiary of Ally Financial, recently decided to exit its mortgage-related broker dealer activities, and will be winding down that operation in an orderly manner over the coming weeks. All existing trades will be honored. Ally is 74 percent owned by the U.S.Click to continue

Landmark $25 Billion Servicing Agreement Filed in Federal Court

Black Gavel Pic/Credit: Brand X Pictures

The U.S. Department of Justice (DOJ), the U.S. Department of Housing & Urban Development (HUD) and 49 state attorneys general have announced the filing of their landmark $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. The federal government and state attorneys general filed in U.S. District Court in the District of Columbia proposed consent judgments with Bank of America Corporation, J.P. Morgan Chase & Company, Wells Fargo & Company, Citigroup Inc.Click to continue

Missouri Governor to Divert Mortgage Settlement Funds to Non-Housing Issues


Missouri Gov. Jay Nixon has submitted an amendment to his recommended budget for Fiscal Year 2013 that restores $40 million in funding for Missouri's public colleges and universities. Missouri is expected to receive a total of more than $140 million in benefits the settlement by states' attorneys general with the nation's five largest mortgage banks over flawed and fraudulent foreclosure practices that led to the housing crisis.Click to continue

Landmark $25 Billion Agreement Reached With Top Five Servicers


U.S. Attorney General Eric Holder, U.S. Department of Housing & Urban Development (HUD) Secretary Shaun Donovan, Iowa Attorney General Tom Miller and Colorado Attorney General John W. Suthers have announced that the federal government and 49 state attorneys general have reached a $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. The joint agreement is the largest federal-state civil settlement ever obtained and is the result of extensive investigations by federal agencies, including the U.S.Click to continue