Ally Discloses ResCap Settlement Amount
Ally Financial Inc. has unveiled the terms of its proposed settlement with creditors of its bankrupt former subsidiary, Residential Capital LLC.
The New York-based company announced earlier this month that it had reached a settlement with ResCap bankruptcy estate and its major creditors that will "settle all existing and potential claims between Ally and ResCap and all potential claims held by third parties related to ResCap that could be brought against Ally and subsidiaries that are not Chapter 11 debtors, except for securities claims by the Federal Housing Finance Agency and the Federal Deposit Insurance Corp., as receiver for certain failed banks."
Terms of the settlement, which was subject to approval by the bankruptcy court and definitive documentation, were kept confidential until the debtors filed a motion to approve the plan support agreement.
Private Investors Fund Growing Firm
Private investors have ponied up more than $100 million to help a growing mortgage firm fund further growth in originations and servicing.
CitiMortgage CEO Departing
The head of Citigroup Inc.'s mortgage business is bidding adieu to the company. In addition to replacing the mortgage chief, the company also named a new chief to its troubled asset unit.
Flagstar CEO Replaced After Less Than a Year
After spending less than a year on the job, the president and chief executive officer of the eighth biggest residential lender has been replaced.
New Kids on the Block
Since early March, at least 20 mortgage companies saw executive-level management changes. Over a dozen of the changes involved senior-level executives -- including two high-level company departures. The majority of appointments involved new hires as just one person was promoted.
Settlement Relieves Ally of Mortgage Liabilities
A settlement reached with creditors of its former mortgage subsidiary will free Ally Financial Inc. from most of its mortgage liability to third parties.
More Bank Executives Headed to Prison
Whoever said that nobody has gone to jail for causing the financial crisis hasn't been following the numerous criminal cases against former executives of failed banks. Defendants are accused of a range of crimes including mortgage fraud, embezzlement and accounting fraud.
Failed Bank's Former President Indicted Last Year
Losses at one of last week's bank failures are expected to exceed 40 percent of its assets. The former president at the bank had been indicted for loan fraud that allegedly occurred while he was at the firm. Two other financial institutions are also no longer in business.
BOK Business Slips as Servicing, Staffing Edge Up
Despite a modest improvement in correspondent mortgage originations, overall mortgage production was slower at BOK Financial Corp. Staffing and servicing, however, edged higher.