Jeffrey Brown has been tapped to serve as president and chief executive officer of Ally Financial Inc.’s (ALLY) Dealer Financial Services business.
Brown, who served as senior executive vice president of finance and corporate planning at Ally, will have oversight for the company's leading automotive finance, insurance and auto servicing operations.
William Muir, Ally’s current president and current head of the Dealer Financial Services business, will step down at the end of the year.
"Ally is fortunate to have a very strong management team that has helped to guide the company through a highly complex transformation over recent years," said Ally CEO Michael Carpenter. “JB is a proven leader and has been a critical force in helping to implement Ally's strategic transformation. He has worked closely with the Dealer Financial Services team and, in his new role, is committed to advancing Ally's leading dealer-centric business model.”
Brown joined Ally in March 2009 as corporate treasurer and, prior to this was the corporate treasurer for Bank of America.
Ally is getting out of the mortgage business entirely. For the fourth quarter of 2013, mortgage operations reported a pre-tax loss of $8 million, excluding repositioning items, compared to pre-tax income of $99 million during the fourth quarter of 2012, due to the company’s exit out of the mortgage business.
As of June 30, 2013, the business has had no further mortgage loan originations, and as a result of the sale of the mortgage-servicing rights portfolio in the second quarter, it has no remaining MSR assets.