Servicing

ResCap to uphold Ally settlement terms in case of deal

Ally Financial‘s troubled mortgage subsidiary, Residential Capital, will honor its work with homeowners in the $25 billion mortgage settlement in case of a “transformative transaction,” according to The Wall Street Journal.

In an addendum to the settlement, Ally said ResCap would still handle homeowner relief measures, including principal write-downs and refinancings, if sold or reorganized. Ally would still pay any dollar amount owed as part of the settlement.

Ally previously said it would resolve issues at ResCap by the end of 2012, which the New York Post reports could include a sale to Fortress Investment Group (FIG).

Tangible net worth of the mortgage unit fell to $104 million from $884 million over the course of 2011.

Read more at The Wall Street Journal.

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