Detroit-based ""Ally Financial Inc."":https://www.ally.com/index.html?CP=ppc110188&gclid=CJaFwZagyqoCFQ4J2godGAgH0A reported a profit for the second quarter of 2011, but its results were down from previous earnings. Ally's net income for Q2 was $113 million, a decline from $146 million in the previous quarter and from $565 million one year ago.[IMAGE]
""We continued to see solid financial results with another profitable quarter, strong capital and liquidity, and lower funding costs,"" said Ally CEO Michael A. Carpenter.
The company's pre-tax income was $466 million for the quarter, up from $428 million in the previous quarter and down from $727 the same quarter last year.
Ally's total equity at the end of the second quarter was $20.4 billion, relatively in keeping with the previous quarter.
The pre-tax income for Ally's origination and servicing division was $47 million for the quarter, down from $249 million in second quarter of 2010.
Ally's mortgage loan production, however, increased from the previous quarter, rising from $12.2 billion to $12.6 billion. The amount one year ago was $13.5 billion.[COLUMN_BREAK]
Ally reported its ""Loan Portfolio and Other"" division Ã¢â‚¬" which includes loans originated before 2009 and non-core business activities Ã¢â‚¬" incurred a pre-tax loss of $174 million for the quarter. The division reported a $19 million loss the same quarter last year.
Ally reports that its loss for the quarter is primarily due to a repurchase expense of $184 million. However, the loss was somewhat alleviated by stabilizing delinquencies, Ally reported.
""We continue to be vigilant in evaluating risks related to our mortgage business and addressing them appropriately, Carpenter said.""
""As a result, we took some additional repurchase reserves during the second quarter,"" he said.
Carpenter continued: ""Reducing risk in our legacy portfolio has been among our top priorities. This is evidenced by our leading position in loss mitigation efforts and the repurchase settlements reached last year with Fannie Mae and Freddie Mac.""
Ally's GMAC Mortgage has completed more than 700,000 loan workouts for defaulted homeowners since 2008.
Ally reports that GMAC has completed twice as many modifications as it has foreclosures.
GMAC remains one of the largest servicers in the country.
Ally Financial recently entered a lawsuit against one of its employees, Tanya L. Blackwell for failing to disclose a conflict of interest.
Blackwell was employed as a foreclosure specialist but also worked as a foreclosure defense attorney.
Blackwell allegedly obtained confidential information through her employment, according to ""_Bloomberg._"":http://www.bloomberg.com/news/2011-07-27/ally-financial-sues-former-employee-over-secret-foreclosure-data.html