Mortgage Unit Troubles Ally (GMAC) Financial

Mortgage Unit Troubles Ally Financial

WHEN General Motors was bailed out, the government sank $17 billion of taxpayers’ money into G.M.’s troubled finance arm, GMAC.

Three years on, we’re still waiting for the payback.

While the Treasury Department sold most of its holdings in G.M. last year, it unloaded only a small portion of its stake in GMAC, which is now known as Ally Financial. Taxpayers today own roughly a quarter of G.M., but they still own 74 percent of Ally.

G.M. is making a lot of money (last week, it reported a first-quarter profit of $1.32 billion) but all is not going smoothly at Ally. While the company’s overall numbers are improving, its mortgage unit is in deep trouble.

That unit, Residential Capital, missed a $20 million debt payment in mid-April. Given that it has roughly $300 million in debt payments coming due from now till June, speculation is rife that ResCap will file for bankruptcy.

Rest here…

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4closureFraud.org

Comments
8 Responses to “Mortgage Unit Troubles Ally (GMAC) Financial”
  1. LVLawman says:

    Just like the recent fraudclosure global settlement, I doubt that ALLY will have to write anything near a really big check if RESCAP files for BK.

    They just say “IT’s TOO BIG TO FAIL” or will lead to risk of “STRUCTURAL INSTABILITY”!

  2. Sal says:

    Review pages 10 – 12.:
    ‘..So…If the borrower and the property are both eligible, and you haven’t disregarded our credit underwriting standards and minimum property requirements, indemnification will not be required.’

    WHAT?! Do you all grasp this?! Especially in light of the recent case?! Conflict of interest? Or worse?

    http://www.mortgagebankers.org/files/Conferences/2011/LoanProduction/LPC11BufftonFHAVARuralHousing.pdf

  3. Cg says:

    GMAC has had a mortgage division for years and years…I know we checked with them in 2002 for a mortgage but they were way more expensive. We recently refinanced (big mistake) and Ally bought our loan. So it’s seems some of the (the facts) in this article may be off.

  4. To Tell The Truth says:

    Don’t be deceived by all this report…the facts are not totally true…there was a false profit reported as usual…anyway, how could ‘they’ allow GMAC/Ally to form a bank for mortgages in 2008? What am I missing here? They should have stuck to car loans…something here is not right and then they get bailout also? Why are we not hearing anything about the servicing company owned by GMAC , the Homecomings Financial? GMAC quickly assumed the servicing of the robo signed docs and mortgage from Homecomings Financial…why and what happened to Homecomings Financial? Why are we not hearing any report about the kind of servicing they were doing? Does anyone know?

  5. gregory says:

    It is time for every American to start calling every morning just like a debt collector and ask when our money will be repaid !!!!! How about a partial paymet something come on…The Federal Govt. needs to start collecting the American Tax Payers money or close these business down. No more corporate wellfare for these deadbeat bankers……

  6. Gene says:

    So… A mortgage unit of a banking institution that made almost $1.32B in profit last quarter missed a $20M payment in likely preparation for BK. So… A mortgage company missed a mortgage payment to protect assets prior to BK.

    The irony is painfully hysterical.

    • lies is all they tell says:

      hmmmm seems strange since the rest of us are going through this. waiting for our own bk. shame the banks can get away with making that kind of profit and not paying hmmmmm how come they dont get the name dead beat bank, only we get that title yet we never caused this. reminds me of what someone posted……millions of americans with credit scores of over 750, putting 20% down on their mortgages decided all in one day to stop paying theri mortgage. there needs to be somehting more sinister at work here. yet none of our eleted officails will stop these fraudulent foreclosures as was done back in the depression. continue to take our homes. at least those of us that ar aware of the fraud are fighting back. i have a heart, i feel bad for those who do not know. who walk away from their home, thinking they signed for this loan and they did something wrong. YES I SIGNED MY PROMISSORY NOTE TOO!!! but i did not give wells fargo permsiion not to verify my income and approve me for a loan that I actually could afford. standards were changed that none of us wee truly aware of. in 1990’s when i bought my 1st house the stanadard was do not buy a house whose paymwnt is more then 25-27 of your TAKE HOME INCOME. in 2006 how did it incease to 33% of you GROSS INCOME. which when the math is done is almost 50% of your take home income. this was done because the securities were formed to default. they new when we would default. they new everyones financials and how much chump change we had and when that chump change would run out. approving incomes 33% of GROSS income was the way they new they could default homeowners. and not doing verification of income gives mortgage brokers the freedom to increase anyones income to pass the electronic underwriting program. please everyone fight, do not give up. if you are just starting out please write everyone, the OCC, AG, senators, local congressman. claim fraud. get it looked at. hold your own do not walk

      • Gene says:

        I wonder if any of that profit is from… say… CREDIT DEFAULT SWAPS and/or OPTIONS??!! At least Gretchen did write that Ally Bank will be putting out some money if the mortgage division files bankruptcy. Sounds like a “strategic” bankruptcy! And who is the money behind Ally? Yep, us.

        BTW: Why are the only mortgage institutions we hear about that are in terrible financial trouble largely owned by the US Government? FNM, FRE being the other two. What about BoA, Wells, etc.? After WAMU and Countrywide, other banks should be head for BK as well, don’t ya’ think? GMAC’s underwriting was not nearly as aggressive as WAMU and Countrywide…

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