The entire company lost $250 million in 4Q, blaming its performance on a $270 million charge for regulatory “penalties” tied to foreclosures. It's assumed that some of the money is linked to a pending 'robo-signing' settlement with the nation's attorneys general.
Ally's mortgage unit, Residential Capital Corp., lost $302 million compared to a loss of $409 million in 3Q. In 4Q 2010 ResCap – which still uses the trade name GMAC Mortgage – earned $120 million.
The biggest profit center at the bank holding company continues to be its auto finance division, though earnings fell there as well: a $592 million profit in 4Q versus $762 million in 4Q 2010.
Announcing its earnings, Ally notes that ResCap is on track “to receive the highest rating (three stars)” from Fannie Mae on a servicing performance measurement.
But Ally's future in mortgages is a bit cloudy. In a new SEC filing the company lists its six “strategic priorities” for 2012. Only one is truly mortgage related: “Continue to manage and reduce mortgage business risk.”
The government-owned Ally had hoped to go public last year but has since scrapped those plans.
