Ally Completes Consumer Relief Obligations Under Settlement

Ally Completes Consumer Relief Obligations Under Settlement

02/15/2013 BY: TORY BARRINGER

Ally Financial has satisfied its consumer relief obligations required under last year’s National Mortgage Settlement (NMS), according to a report filed by settlement monitor Joseph Smith Jr.

Smith filed his report with the Federal District Court for the District of Columbia, certifying that “Residential Capital, LLC, Ally Financial, Inc. and GMAC Mortgage,LLC (collectively, Ally) have satisfied their consumer relief obligations.”

According to the settlement terms, Ally was required to provide $200 million in relief to customers in the form of  loan modifications, short sales, principal forgiveness, and other forms of relief. Smith confirmed that the bank provided more than $257 million to that end.

Smith also stated that Ally has been found to be “in substantial compliance with its mandatory solicitation requirements under NMS,” having established loan modification and refinance programs that meet the obligation.

“I will continue my work with Ally and its successors to ensure that they are following the servicing standards, fulfilling their mandatory solicitation obligations and appropriately working with their customers over the next two years,” Smith said in a statement. “I hope that the consumer relief and the servicing standards the crafters of this bipartisan, state-federal Settlement negotiated will continue to help homeowners across the nation.”

As NMS Monitor, Smith will release his third report on servicer progress later this month. The report will include data on the consumer relief activity of Ally, Bank of AmericaCitiChase, and Wells Fargo five banks involved in the $25 billion mortgage settlement reached last year.

The banks were given three years to complete consumer relief obligations starting March 2012.

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