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“Don’t think of this as Ally going down the road of the old GMAC,” Brown said, referring to the home lending unit that brought Ally to the brink of collapse.
The bank has no plans to securitize its originations, and it won’t keep any servicing rights or build out a servicing operation, Ally spokeswoman Gina Proia said in an e-mail. The bank will detail new product offerings, including a new credit card, at its investor conference in February.
GMAC’s ResCap was once of the nation’s top subprime lenders, but eventually GMAC and ResCap began dragging down Ally’s business, with ResCap eventually falling into bankruptcy.
In 2012, Ally announced that it was going to shutter its mortgage business after the conclusion of ResCap’s bankruptcy proceedings.
In May 2012, Ally executives said they planned to sell off $1.3 billion in mortgage servicing rights owned by Ally Bank as part of the wind down.
"You can live in your car if you don't pay your mortgage," then-Ally CEO Michael Carpenter said in 2012. "I don't mean to be cute, but the fact is people make their car payment before they pay their mortgage."
In 2013, Ally agreed to contribute $1.95 billion in cash to the ResCap estate, as well as the first $150 million of the insurance recoveries expected in connection with additional mortgage-related losses.
As of June 30, 2013, Ally ceased new mortgage loan originations, the company said at the time. The company also sold off the last of its mortgage servicing rights in the second quarter of 2013.
"Ally closed the chapter on its legacy mortgage issues, sold substantially all of its international operations, reduced its higher cost unsecured debt and achieved financial holding company status,” Carpenter said in Fed. 2014. “Today, Ally has a pristine balance sheet and is focused on its strengths with its leading domestic automotive services and direct banking franchises.”
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