Ally Bank 2011 Annual Report Download - page 62

Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10−K
The following table summarizes domestic consumer mortgage loan production by channel for our Origination and Servicing operations.
2011 2010 2009
Year ended December 31, ($ in millions) Number of loans
Dollar
amount of
loans Number of loans
Dollar
amount of
loans Number of loans
Dollar
amount of
loans
Correspondent lender and secondary market
purchases 196,964 $ 45,349 263,963 $ 61,465 260,772 $ 56,042
Direct lending 37,743 7,414 36,064 7,586 42,190 8,524
Mortgage brokers 12,018 3,495 2,035 491 607 165
Total U.S. production 246,725 $ 56,258 302,062 $ 69,542 303,569 $ 64,731
The following table summarizes the composition of our domestic consumer mortgage loan production for our Origination and Servicing operations.
2011 2010 2009
Year ended December 31, ($ in millions) Number of loans
Dollar
amount of
loans Number of loans
Dollar
amount of
loans Number of loans
Dollar
amount of
loans
Ally Bank 245,849 $ 56,130 300,738 $ 69,320 299,302 $ 64,001
ResCap 876 128 1,324 222 4,267 730
Total U.S. production 246,725 $ 56,258 302,062 $ 69,542 303,569 $ 64,731
Mortgage Loan Production by Type
Consistent with our focus on GSE loan products, we primarily originate prime conforming and government−insured residential mortgage loans. We
define prime as mortgage loans with a FICO score of 660 and above. In addition, we originate and purchase high−quality nonconforming jumbo loans,
mostly from correspondent lenders, for the Ally Bank held−for−investment portfolio. Our mortgage loans are categorized as follows.
• Prime conforming mortgage loans — Prime credit quality first−lien mortgage loans secured by 1−4 family residential properties that meet or
conform to the underwriting standards established by the GSEs for inclusion in their guaranteed mortgage securities programs.
• Prime nonconforming mortgage loans — Prime credit quality first−lien mortgage loans secured by 1−4 family residential properties that either
(1) do not conform to the underwriting standards established by the GSEs because they had original principal amounts exceeding GSE limits,
which are commonly referred to as jumbo mortgage loans, or (2) have alternative documentation requirements and property or credit−related
features (e.g., higher loan−to−value or debt−to−income ratios) but are otherwise considered prime credit quality due to other compensating
factors.
• Prime second−lien mortgage loans — Open− and closed−end mortgage loans secured by a second or more junior−lien on single−family
residences, which include home equity mortgage loans and lines of credit. We ceased originating prime second−lien mortgage loans during 2008.
• Government mortgage loans — First−lien mortgage loans secured by 1−4 family residential properties that are insured by the Federal Housing
Administration or guaranteed by the Veterans Administration.
• Nonprime mortgage loans — First−lien and certain junior−lien mortgage loans secured by single−family residences made to individuals with
credit profiles that do not qualify for a prime loan, have credit−related features that fall outside the parameters of traditional prime mortgage
products, or have performance characteristics that otherwise exposes us to comparatively higher risk of loss. Nonprime includes mortgage loans
the industry characterizes as “subprime,” as well as high combined loan−to−value second−lien loans that fell out of our standard loan programs
due to noncompliance with one or more criteria. We ceased originating nonprime mortgage loans during 2007.
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