From HW:
Ally Financial’s mortgage unit, Residential Capital, and certain ResCap subsidiaries reached a $462 million settlement with Fannie Mae on potential mortgage repurchases.
The agreement covers loans serviced by ResCap subsidiary GMAC Mortgage on behalf of Fannie Mae prior to June 30 and all mortgaged-backed securities that Fannie Mae purchased at various times prior to the settlement, including private-label securities, Ally said Monday.
The settlement releases ResCap and its subsidiaries from about $292 billion in potential repurchases, Ally said.
“At the start of 2010, we set a goal to substantially reduce risk in our mortgage operation and, during the last 12 months, we have successfully completed a series of steps toward that objective and are largely complete,” said Ally CEO Michael A. Carpenter. “This agreement, along with prior repurchase settlements with Freddie Mac and others and the sale of legacy assets and operations, has significantly reduced Ally’s risk related to the legacy mortgage business going forward,” he said in a press statement.
ResCap CEO Thomas Marano said the firm will “focus predominantly on the origination and servicing of conforming mortgages” going forward. ResCap’s subsidiary, GMAC Mortgage, originates and services residential mortgages under the GMAC Mortgage and ‘ditech’ brand names.
Ally said the settlement “was modestly in excess of reserves previously taken.”
Are you F’in kidding me?
Ally Bank (formerly GMAC aka Government Motors), owned and run by the Obama Administration along with Cerberus Capital, is settling for less than 0.2% of the fraudulent loans it wrote with Fannie Mae, wholly owned and operated by the Obama Administration.
A taxpayer giveaway to the Obama cronies at Cerberus.
Ain’t corporatism grand?
292,000,000,000 = $292 billion
462,000,000 = $462 million
$292,000,000,000 – $462,000,000 = $291,538,000,000 or roughly $291.5 billion
This is “roughly” 00.16% of the total owed. (A little more than 1 tenth of 1 percent.)
* Put another way this would be like paying 16 cents on a $100 dollars owed.