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Ally Financial settles with DoJ over mortgage-related claims
November 21, 2016 / 11:42 PM / in a year

Ally Financial settles with DoJ over mortgage-related claims

Nov 21 (Reuters) - Ally Financial Inc said it agreed to pay $52 million to settle claims made by the U.S. Department of Justice against its former mortgage unit related to alleged misstatements about its residential mortgage-backed securities (RMBSs).

The investigations and potential claims were against former unit Residential Capital LLC and its units (ResCap RMBS), the automotive lender said on Monday.

The settlement amount was fully reserved in the third quarter, Ally said.

Ally also agreed to withdraw the broker-dealer registration of Ally Securities LLC, formerly Residential Funding Securities LLC.

Ally said the decision would have no impact on operations as the broker-dealer had not been a “significant” part of the company for some time.

Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila

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