Ally Financial Inc., the bank holding company that controls the nation’s fifth largest residential lender, has delayed – for now – its initial public offering, according to industry advisors who do business with the company.
Although Ally on Friday would not comment on new press reports about the IPO delay, these advisors caution that the Treasury-controlled mortgage and auto finance lender/servicer still plans to go public, but it’s unclear when.
“This is about timing,” said one advisor, requesting anonymity. “They’ve set the table: they’ve worked out their GSE [buyback] settlements, they’ve sold off nonperformers. They seem to be fine.”
Ally’s mortgage arm, Residential Capital Corp./GMAC Mortgage continues to fund mortgages through wholesale and retail outlets. It services $384 billion in home mortgages, ranking fifth in that category as well, according to National Mortgage News.
Bloomberg, early Friday, quoting a “person familiar” with the Ally matter reported that the bank holding company “delayed plans to start marketing the IPO until equity markets improve.”
This month the Dow reached lows not seen since March. Ally filed its initial IPO paperwork in the early spring.
