Mortgage Daily Logo
mortgage news from industry experts

Ally Originations Increase

Driven by strong refinance activity, quarterly home-loan production jumped by more than a third at Ally Financial Inc. — though year-over-year activity was down by nearly half as a result of lost correspondent business. Mortgage and corporate income significantly strengthened.

Residential loan originations were $8.2 billion during the three months ended Sept. 30, according to third-quarter earnings data released Friday.

Business improved from $5.9 billion in the prior period but tumbled from $15.6 billion during the same quarter during 2011.

“The decrease in loan production year-over-year was largely driven by the company’s strategic decision to reduce its presence in the correspondent lending channel,” the report stated. “Additionally, Ally Bank announced it was exiting the warehouse lending business in July as it had become less strategic to the business, which in part affected production levels.”

The latest activity brought year-to-date production to $22.7 billion.

Prime conforming originations accounted for $7.3 billion of third-quarter fundings, while prime non-conforming production was $0.5 billion and government volume totaled $0.3 billion. Refinance share was a whopping 82 percent.

Ally’s mortgage servicing rights portfolio finished September at $123 billion.

The net carrying value of the mortgage investment portfolio was $9.3 billion, the same as on June 30 and on Sept. 30, 2011.

Third-quarter 30-day delinquency was unchanged from the second quarter at 3.2 percent. The rate was 3.3 percent at the same point last year.

Outstanding repurchase claims increased to $98 million from $82 million in the second quarter. The deterioration reflected $113 million in new claims, $36 million in rescinded claims and $61 million in paid claims.

The mortgage operations, excluding ResCap, generated $354 million in earnings, better than the $24 million earned three months earlier and swinging from a $409 million loss a year earlier.

“Also in October, Ally Bank announced it began a process to evaluate strategic alternatives for its agency MSR portfolio and mortgage business lending operation, which is another step in its plan to effectively exit the agency mortgage business,” Michael A. Carpenter, chief executive officer of the Detroit-based company, said in the report. “The steps we are taking, coupled with the strength of the underlying auto finance and direct banking franchises, will support Ally’s plan to repay the remaining U.S. Treasury investment and thrive going forward.”

Company-wide pre-tax income swung to a $559 million profit from the second-quarter loss of $753 million. Ally earned $119 million in the same period last year.

Government ownership of Ally stands at 74 percent.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION