Moody's labels Ally jumbos 'above average'
Moody's Investors Service (MCO) believes the ability of Ally Financial (GJM) to originate jumbo mortgages is "above average." A leading reason for the designation is based on accurate assessment of the willingness of borrowers to repay their jumbo mortgages. Accurate appraisals and originating mortgages according to geographical laws and regulations contributed to the ratings agency's high opinion. Ally Financial CEO Michael Carpenter called said the bank will make significant reductions in correspondent lending originations but relationships will be maintained with key customers. Most of the firm's jumbo mortgages originated through correspondent lenders. Moody's said that, based on detailed information provided by Ally, eight of the 3,424 jumbo loans originated from April 2009 through March 2011 became more than 60-days delinquent within 24 months of origination. Write to Jacob Gaffney. Follow him on Twitter @jacobgaffney.