Ally Bank 2011 Annual Report Download - page 168

Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10−K
ASU 2009−17, we are not the primary beneficiary of any GSE loan securitization transaction because we do not have the power to direct the significant
activities of such entities. Additionally, under ASU 2009−17, we do not consolidate certain private−label mortgage securitizations because we do not have a
variable interest that could potentially be significant or we do not have power to direct the activities that most significantly impact the performance of the
VIE. For nonconsolidated securitization entities, the transferred financial assets are removed from our balance sheet provided the conditions for sale
accounting are met. The financial assets obtained from the securitization are primarily reported as cash, servicing rights, or retained interests (if applicable).
Typically, we conclude that the fee we are paid for servicing consumer automobile finance receivables represents adequate compensation, and consequently,
we do not recognize a servicing asset or liability. As an accounting policy election, we elected fair value treatment for our MSR portfolio. Liabilities
incurred as part of these securitization transactions, such as representation and warranty provisions, are recorded at fair value at the time of sale and are
reported as accrued expenses and other liabilities on our Consolidated Balance Sheet. Upon the sale of the loans, we recognize a gain or loss on sale for the
difference between the assets recognized, the assets derecognized, and the liabilities recognized as part of the transaction.
The following summarizes all pretax gains and losses recognized on financial assets sold into nonconsolidated securitization and similar asset−backed
financing entities.
Year ended December 31, ($ in millions) 2011 2010 2009
Consumer mortgage — GSEs $ 818 $ 1,065 $ 854
Consumer mortgage — private−label — 17 21
Commercial automobile — — 110
Total pretax gain $ 818 $ 1,082 $ 985
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