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, 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

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

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

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

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 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

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

The Federal Housing Finance Agency (FHFA), as conservator to the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, has filed lawsuits against 17 financial institutions, certain of their officers and various unaffiliated lead underwriters. The suits allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities (MBS) to the GSEs.

Complaints have been filed against the following lead defendants:Click to continue

Ally Financial Inc. has reported a net income of $79 million for the fourth quarter of 2010, compared to a net loss of $5 billion for the fourth quarter of 2009. Core pre-tax income, which reflects income from continuing operations before taxes and original issue discount (OID) amortization expense from bond exchanges, totaled $533 million in the fourth quarter of 2010, compared to a core pre-tax loss of $3.5 billion in the comparable prior year period.Click to continue