Tag Archives: Ally

Ally Financial's CEO Michael Carpenter told investors Wednesday that his company ""would not settle for the kind of numbers being bandied about"" as recompense for mishandled foreclosure paperwork. Ally's GMAC Mortgage was the first servicer to admit to robo-signing issues and affidavit errors related to foreclosure processing last fall. Analysts estimate the company could be on the hook for $2.5 billion of state attorneys general's $25 billion settlement proposal. Carpenter says it should be a ""small fraction"" of that amount.

State attorneys general and the nation's five largest mortgage servicers could be within weeks of reaching a $25 billion agreement to settle allegations that foreclosures were improperly processed. Details of the settlement terms obtained by DSNews.com indicate that individual servicer penalties will be based on the number of foreclosures they've completed. Collectively, $5 billion would come in the form of cash fines and $20 billion would be satisfied with principal-reducing modifications and refinancing for underwater borrowers.

Help for underwater homeowners has moved from principal writedowns to refinancing in the settlement negotiations between state attorneys general and the nation's five largest mortgage servicers. According to a widely circulated report, the proposal made its way into the talks last week. Borrowers who are current on their mortgage payments but owe more than their home is worth would be able to refinance at today's lower rates. The main caveat is that the loan must be owned, not just serviced, by one of the five banks.

GMAC Mortgage has teamed up with the Loan Value Group, LLC on a pilot program that provides financial incentives for borrowers with VA loans to remain current. GMAC is offering Loan Value Group's Responsible Homeowner (RH) Reward program to a group of Veterans Administration (VA) customers who are current on their mortgage payments but have seen a significant decline in the value of their homes. The program returns a portion of their lost equity in exchange for continued, timely mortgage payments.

New Jersey's Superior Court has lifted the last of six injunctions handed down late last year, giving Ally Financial and its GMAC Mortgage unit the go-ahead to resume foreclosure actions in the state. The Superior Court judge issued an order this week stating that GMAC had demonstrated the ""reliability of its processes"" and is ""permitted to resume prosecution of uncontested foreclosure proceedings."" Five other servicers were given the green light to begin the regular order of processing foreclosures in the state last month.

The Federal Housing Finance Agency's decision to pursue legal action against firms that sold residential mortgage-backed securities to Fannie Mae and Freddie Mac could potentially strain relationships between the GSEs and the companies named as defendants, many of whom still sell mortgages to Fannie and Freddie and service home loans held by the two mortgage financiers. Some of the financial firms have been forthcoming with pledges to aggressively defend themselves against the allegations and are disappointed by the fact that FHFA has taken to the courts.

HOPE LoanPort has announced a partnership with the state of Maryland and GMAC Mortgage to deliver a direct-to-consumer foreclosure mediation portal. GMAC is funding development of the portal and will be the first mortgage servicer to use it. The portal, scheduled to go live in October 2011, will be the first statewide program in the nation to allow homeowners and servicers to exchange documents electronically prior to foreclosure mediation.

A New Jersey judge has given the green light for five of six major mortgage servicers to resume uncontested foreclosures in the state after a formal review of their procedures demonstrated the ""reliability of their processes."" Bank of America, Citibank, JPMorgan Chase, Wells Fargo, and OneWest Bank have been granted permission to restart foreclosures. Ally's GMAC Mortgage is awaiting the court's decision. Since the beginning of 2011, just over 6,000 foreclosures have surfaced in the state courts, compared to 35,000 filings at this time last year.

Ally Financial Inc., one of the nation's five largest mortgage servicers, acknowledged receipt of subpoenas from the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC) Wednesday. The subpoenas are directed at Ally Financial Inc. and GMAC Mortgage LLC's mortgage activities. Ally says the subpoenas may result in adverse judgments, fines and penalties, or injunctions.

GMAC Mortgage said Tuesday that the company has signed contracts with all states participating in the Treasury Department's Hardest Hit Fund (HHF). The HHF program was established to provide targeted aid to homeowners in states hit hard by the economic and housing market downturn, specifically, states where unemployment rates are above 12 percent and home prices have experienced the steepest drops.