Ally Financial Statement on Mortgage Servicing Consent Order
DETROIT, April 13, 2011 /PRNewswire/ — Ally Financial Inc. (Ally) and certain of its subsidiaries have executed the Consent Order issued by the Board of Governors of the Federal Reserve and the Federal Deposit Insurance Corporation related to the servicing operation of its mortgage business.
The company deeply regrets the error in processing certain affidavits and has acted with urgency and rigor in addressing and remediating the issue. Through our review to date, Ally has not found any instance where a homeowner was foreclosed upon without being in significant default.
GMAC Mortgage has substantially upgraded its operations over the past two years and today has a Tier 1 servicer rating from the Department of Housing and Urban Development (HUD) and ranks first among large servicers in borrower workouts by Fannie Mae. In addition, the company has been a leader in loan modifications and has completed more than 610,000 borrower workouts since 2008 on a servicing portfolio averaging 2.7 million loans.
Ally continues to remain committed to offering borrowers in financial distress affordable and sustainable payment relief whenever possible. Over the last several months, Ally has continued to pursue ways in which it can further enhance its processes to provide additional assistance to homeowners, including streamlining written communications to borrowers, participating in programs such as the Hardest Hit Fund, and implementing additional quality control measures, among many other enhancements.
Ally has placed the highest priority on meeting the requirements of the Order. In this regard, the company has designated an internal executive team, with senior management from Ally Financial, GMAC Mortgage and Ally Bank, which will have oversight for the timely and high-quality compliance with the Order. Given the importance of this effort, Ally has also reassigned its general auditor, Mark Weintraub, to lead these initiatives at the Ally Financial level, working closely with the businesses. Weintraub will have day-to-day responsibility for ensuring that all areas of the company are meeting the requirements of the Order on a timely basis.
SOURCE Ally Financial