Hints and tips:
..., Wells Fargo, Citi and GMAC) on the other....
...Consider definedcontribution retirement plans like 401(k)s....
...measure the (mortgage) risks in their portfolios by means of internal models, understood only by themselves; g) the lack of a retained “skin in the game” when a bank repackages a loan into a mortgage-backed...
...The successful auction follows the sale of ResCap’s mortgage servicing business to Ocwen Financial for $3bn on Wednesday after it won a bidding war with Nationstar Mortgage....
...Ally itself is majority-owned by the US Treasury and used to be known as GMAC, the financing arm of General Motors....
...The former financing arm of General Motors, which used to be called GMAC, Ally had to pull a previous IPO because of fears about its liabilities for failed mortgages....
...Big banks such as Citigroup have repaid crisis-era aid to the US government and the Treasury’s stake in AIG has fallen to a sixth, leaving Ally Financial, once called GMAC, in the dust....
...Berkshire also sought to displace Nationstar, a mortgage company backed by Fortress Investment Group, as the stalking horse bidder for the mortgage business....
...The Berkshire bids are the latest twist in a battle between Ally, which was the financing arm of GM and went by the name GMAC before the $17.1bn government bailout, and Mr Buffett’s company....
...Berkshire is a major creditor of Residential Capital, the mortgage unit placed into bankruptcy by Ally Financial last month, according to a court filing on June 4....
...Ally, 74 per cent owned by the US Treasury, used to be known as GMAC, the financing arm of General Motors....
...$20bn fine on the top mortgage servicers....
...Most US mortgages are now funded by government-controlled Fannie Mae and Freddie Mac. “It is great to be a mortgage originator these days,” the person said....
...much of the nation’s mortgages....
...News of the carve-out from GMAC comes as the group continues to seek a buyer for ResCap, its mortgage lending arm, at a sufficient price....
...The Securities and Exchange Commission is looking into US banks’ mortgage practices, according to people close to the situation, in a sign of mounting regulatory pressure on lenders and home loan servicers...
...At a maximum … here’s CreditSights on a rather more dismal scenario: There is also speculation that this may be the beginning of a process to force one of the major problems facing the mortgage market;...
...All business segments were profitable, including mortgages, which recorded a $230m pre-tax gain, compared with a loss of $1.3bn in the same period a year ago....
...GMAC said it would receive “hundreds of millions of dollars” in the transaction, but would not record a material gain or loss, because it already took a big writedown on the mortgages it originated at the...
...Continuing operations in the mortgage division earned a profit of $175m, compared with a loss of $995m a year earlier....
...The company has also been on a buying spree in Europe, where it bought GMAC’s residential mortgages arm, and in Japan. It also intends to buy more hedge funds....
...a large mortgage securitisation division called ResCap and Ally, an online bank....
...Michael Carpenter, GMAC chief executive, testified that the mortgage lender was a “millstone” round the company’s neck....
...GMAC has been selling divisions as it focuses on its core automotive lending business, after losses in its residential mortgage division, called ResCap, forced the company to seek $17bn from taxpayers last...
...Fannie Mae and Freddie Mac, the rescued mortgage guarantors, are – like GMAC – going the way of deeper state involvement: the Treasury removed a $400bn cap on state aid on Christmas eve....
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