Home >> News >> Government >> Ally Financial Takes Leave of Broker-Dealer Activities
Print This Post Print This Post

Ally Financial Takes Leave of Broker-Dealer Activities

""Ally Financial"":http://www.ally.com/financial/ will soon take leave of mortgage broker-dealer activities and exit its share of the marketplace.


A spokesperson said in an email to _MReport_ late Monday that the Detroit-based company ""recently decided to exit its mortgage-related broker dealer activities, and will be winding down that operation in an orderly manner.""


The source said that Ally will honor all existing trades.

""These activities are no longer strategic for Ally, and as a result it will refocus resources, capital and attention toward initiatives that more directly support the key franchises,"" the spokesperson added.

Ally said that it will continue to operate broker-dealer activities in the insurance share of the marketplace.

The company reportedly continues to experience problems related to fallout from subprime mortgages.

""_The Wall Street Journal_"":http://online.wsj.com/article/BT-CO-20120409-710175.html reports that the federal government owns 74 percent of the company, the result of more than $17 billion in bailout money it received to withstand the financial crisis.

Many expect Ally to file for bankruptcy for the Residential Capital mortgage subsidiary it owns to focus on online banking and automobile lending, according to the publication.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.

Check Also

Premier Mortgage Rebrands as Cherry Creek Mortgage

PMG, part of the Cherry Creek Mortgage family since 2006, rebrands and becomes Cherry Creek Mortgage.

Subscribe to MDaily

MReport is here for you to stay on top of important developments in the mortgage marketplace. To begin receiving each day’s top news, market information, and breaking news updates, absolutely free of cost, simply enter your email address below.