Ally To Scale Back Mortgage Business After 3Q Loss

Law360, New York (November 2, 2011, 11:47 PM EDT) -- Ally Financial Inc. has decided to curtail its mortgage business after reporting a $471 million third-quarter loss from mortgage servicer Residential Capital LLC, the financial services company announced Wednesday.

After more than a year of steady profits, the lender posted a $210 million loss for the third quarter of 2011, thanks to a decline in interest rates and mortgage market volatility that sent ResCap into the red.

The company said it would reduce mortgage originations but maintain relationships with key customers and continue to participate in...
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