Monday, May 4, 2015

Montco mortgage giant bankrupt

Ally Financial, which employs 2100 at its Ft Washington loan support center, has asked federal bankruptcy court protection for its Residential Capital (ResCap) business

Montco mortgage giant bankrupt

One of the biggest private employers in Montgomery County is seeking a financial reorganization that could lead to new owners.

Ally Financial Inc., Detroit, the taxpayer-controlled loan company that used to be the consumer finance arm of General Motors Corp.'s GMAC division, has filed for federal bankruptcy protection for its Residential Capital (ResCap) unit and plans a financial write-down, reorganization and possible sale of the business. Ally has agreed to sell ResCap to NationStar, of Dallas, for $2.4 billion, if it doesn't get a better offer.

Ally employs around 2,100 at its Fort Washington loan servicing offices. About 1,385 of those work for ResCap, says spokeswoman Susan Fitzgerald. Nationstar employs around 2,500.

"We do not anticipate any headcount changes here and we expect to remain in this office location," Fitzgerald told me this morning. "The Fort Washington facility is vital to the company going forward. Employees here serve in roles such as loan servicing and direct lending."

Ally statement here. ResCap statement here. Reuters story here, Bloomberg story here.

Also, Ally plans to sell its foreign operations, Ally boss Michael Carpenter said in the statement. Ally's goal is to raise enough money to pay back half the $12 billion it still owes the federal government from its rescue following the 2008 financial crisis.

About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at or 215 854 5194.

Joseph N. DiStefano
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