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Ally reaches settlement with the FHFA, FDIC

Ally reaches settlement with the FHFA, FDIC

[Update 1: A previous version of this article suggested Ally settled for $170M. However, that figure refers to what the firm added to its loss reserves]

Ally Financial Inc. (ALLY) has reached a settlement with the Federal Housing Finance Agency and the Federal Deposit Insurance Corporation to resolve outstanding mortgage issues. The bank, which used to be over lenderResidential Capital, disclosed an additional $170 million contribution to its loss reserves in the third quarter.

Details of the settlement itself have yet to be released.

The settlements require pending litigation against Ally to be dismissed. Ally has been slowly diminishing its exposure to the mortgage lending space. The firm’s former mortgage division, ResCap, entered into bankruptcy reorganization in the wake of the financial crisis.

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