At deadline an Ally spokeswoman said the firm had no comment on the matter.
One industry observer said he believes the foreclosure-related matter is likely Ally's financial hit for settling robo-signing allegations. (A nationwide settlement between five large servicers, the Department of Justice, and State Attorney Generals is pending.)
In a new SEC filing Ally noted that a majority of the charge will be recorded at its mortgage division, Residential Capital, LLC. It adds: “Further, ResCap is required to maintain consolidated tangible net worth of at least $250 million at the end of each month under the terms of certain of its credit facilities.”
As a result of the charge, ResCap fell out of compliance on its lines, but then remedied the shortfall when Ally gave it $196.5 million “which was provided through forgiveness of intercompany debt and results in pro-forma tangible net worth at ResCap of $300 million.”
Recently, investors holding at least $800 million of secured bonds in ResCap organized and hired counsel, fearing a possible bankruptcy filing by the mortgage unit.
Ally Financial, a bank holding company, is majority owned by the U.S. government. Ally had hoped to take ResCap/GMAC public last year but eventually scuttled the idea. ResCap/GMAC receives funding for its mortgage business from Ally.
