Ally Bank 2011 Annual Report Download - page 101

Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10−K
these monoline−wrapped securitizations. During the year ended December 31, 2011, the Mortgage Companies received repurchase claims related to $265
million of original unpaid principal balance from the monolines associated with the 2004 through 2007 securitizations. The Mortgage Companies have
resolved repurchase demands through indemnification payments related to $20 million of original unpaid principal balance.
We are currently in litigation with MBIA and FGIC, and additional litigation with other monolines is likely. Refer to Note 31 to the Consolidated
Financial Statements for information with respect to pending litigation.
The following table summarizes the changes in our original unpaid principal balance related to unresolved repurchase demands with respect to our
monoline exposure. The table includes demands that we have requested be rescinded but which have not been agreed to by the investor.
($ in millions) 2011 2010
Balance at January 1, $ 661 $ 553
New claims (a) 265 151
Resolved claims (b) (20) (36)
Rescinded claims/other 11 (7)
Balance at December 31, $ 917 $ 661
(a) Excludes certain populations where counterparties have requested additional documentation.
(b) Includes losses, settlements, impairments on repurchased loans, and indemnification payments.
Private−label Securitization — Historically, our Mortgage operations were very active in the securitization market selling whole loans into
special−purpose entities and selling these private−label MBS to investors.
The following table summarizes the original unpaid principal balance of our domestic uninsured private−label mortgage securitization activity issued
from various shelf registration statements of our subsidiaries and its corresponding majority product type and current unpaid principal balance for
securitizations completed during 2004 through 2007.
($ in billions) Original UPB Current UPB at December 31, 2011 UPB at December 31, 2010
RFMSI (Prime) $ 21.8 $ 8.3 $ 10.0
RALI (Option ARM and Alt−A) 66.7 26.2 30.7
RAMP (HELOC and Subprime) 55.9 (a) 12.9 15.0
RASC (Subprime) 36.8 8.0 9.0
RFMSII (HELOC) 0.9 0.3 0.3
Total $ 182.1 $ 55.7 $ 65.0
(a) RAMP original unpaid principal balance comprises $37.7 billion subprime, $8.8 billion prime, and $9.4 billion other.
The following table summarizes the original unpaid principal balance of our domestic insured private−label mortgage securitization activity issued
from various shelf registration statements of our Mortgage Subsidiaries and its corresponding majority product type and current unpaid principal balance for
securitizations completed during 2004 through 2007.
($ in billions) Original UPB Current UPB at December 31, 2011 UPB at December 31, 2010
RFMSI (Prime) $ 1.7 $ 0.5 $ 0.6
RALI (Option ARM and Alt−A) 1.4 0.6 0.7
RAMP (HELOC and Subprime) 26.5 6.3 7.3
RASC (Subprime) 3.6 0.6 0.7
RFMSII (HELOC) 9.5 2.1 2.6
Total $ 42.7 $ 10.1 $ 11.9
In general, representations and warranties provided as part of our securitization activities are less rigorous than those provided to the GSEs and
generally impose higher burdens on parties seeking repurchase. In order to successfully assert a claim, it is our position that a claimant must prove a breach
of the representations and warranties that materially and adversely affects the interest of the investor in the allegedly defective loan. Securitization
documents typically provide the investors with a right to request that the trustee investigate and initiate a repurchase claim. However, a class of investors
generally is required to coordinate with other investors in that class comprising not less than 25%, and in some cases, 50%, of the percentage interest
constituting a class of securities of that class issued by the trust to pursue
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