Ally Financial (ALLY) Provided Statement on DOJ Settlement Agreement
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Ally Financial Inc. (NYSE: ALLY) is pleased to have comprehensively resolved all outstanding investigations and potential claims by the U.S. Department of Justice (DOJ) related to residential mortgage-backed securities issued by the company's former mortgage subsidiary Residential Capital, LLC and its subsidiaries (ResCap RMBS).
This settlement brings closure to the DOJ's investigations relating to Ally and ResCap RMBS, including investigations into potential claims under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the False Claims Act. Additional information on these matters was previously disclosed in Ally's Securities and Exchange Commission filings, including most recently in the Mortgage Matters section of the third quarter Form 10-Q.
Ally has agreed to pay a total of $52 million in connection with the settlement agreement, and this amount was fully reserved in the third quarter of 2016. Ally has also agreed to withdraw the broker-dealer registration of Ally Securities LLC (formerly known as Residential Funding Securities LLC), which has not been a strategically significant part of the company for some time and will have no impact on Ally's ongoing operations.
Ally remains focused on its go-forward strategic plan to build on its strengths in digital financial services, further grow its customer and deposit bases and continue to deliver strong earnings growth. The company is pleased to have this remaining legacy mortgage matter put to rest after several years.
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