Ally Financial Statement on Foreclosure Deal
Ally Financial Inc. and its mortgage subsidiary, Residential Capital, LLC, have reached an agreement in principle with the federal government and state attorneys general on foreclosure-related matters.
The agreement brings closure to these issues and enables the company to move forward in our ongoing efforts to help borrowers find affordable and sustainable payment relief whenever possible.
The agreement is in the amount of $310 million, with $110 million in cash for federal and state payments and $200 million in borrower relief. Ally expects that the financial impact of the agreement will not be material on financial results for the first quarter of 2012 and future periods
Since 2008, ResCap's servicing operation has completed more than 765,000 loan modifications for borrowers, representing 28 percent of the loans serviced during that period. While a significant number of loans that would qualify for payment relief have already been addressed, ResCap remains committed to pursuing all available options for borrowers whenever possible and believes that the agreement reached will provide incremental assistance to some borrowers.
