FHFA Dismisses Claims Against Ally Financial

Oct 31, 2013

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. "These settlements are key steps in Ally addressing its remaining legacy mortgage risks," said Chief Executive Officer Michael A. Carpenter. "We are pleased to be able to put these matters behind us and continue to focus on our leading automotive finance and direct banking operations." As part of the settlement with the FHFA, the ResCap Chapter 11 Plan will be amended to add Freddie Mac, and the FHFA, as conservator for Freddie Mac and Fannie Mae, as exceptions to the third party releases only with respect to certain ordinary-course claims against Ally Bank, as a former mortgage seller and servicer.

About the author

NationalMortgageProfessional.com

Link copied

Published

Oct 31, 2013

Community

Let’s Make It Personal: Turning Contacts Into Friends

Simple ways to turn everyday contacts into genuine friends so your network feels more like a community and less like a contact list

In today’s fast-moving, digital world, it’s easy for professional relationships to feel transactional and impersonal. But the most successful connections — especially in client-focused industries like mortgage lending — are those that feel personal, authentic, and meaningful...

Analysis and Data

June FHA MBS Report

The expected spike in delinquencies materialized

This is a contribution from Reverse Engineering Finance. The second half of the year typically sees significant jumps in FHA mortgage delinquencies/serious delinquencies. This starts with the June data and indeed, there is such a jump this June. GNMA June MBS data drop...