Ally Bank 2011 Annual Report Download - page 63

Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10−K
The following table summarizes consumer mortgage loan production by type 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
Prime conforming 209,031 $ 47,511 228,936 $ 53,721 164,780 $ 37,651
Prime nonconforming 2,008 1,679 1,837 1,548 1,236 992
Prime second−lien — — — — 3 1
Government 35,686 7,068 71,289 14,273 137,550 26,087
Nonprime — — — — — —
Total U.S. production 246,725 $ 56,258 302,062 $ 69,542 303,569 $ 64,731
U.S. Warehouse Lending
We are a provider of warehouse−lending facilities to correspondent lenders and other mortgage originators in the United States. These facilities enable
lenders and originators to finance residential mortgage loans until they are sold in the secondary mortgage loan market. We provide warehouse−lending
facilities principally for prime conforming and government mortgage loans. We have continued to refine our warehouse−lending portfolio, offering such
lending only to current Ally Bank correspondent clients. Advances under warehouse−lending facilities are collateralized by the underlying mortgage loans
and bear interest at variable rates. At December 31, 2011, we had total warehouse line of credit commitments of $2.8 billion, against which we had
$1.9 billion of advances outstanding. We also have $24 million of warehouse−lending receivables outstanding related to other offerings at December 31,
2011. We purchased approximately 35% of the mortgage loans financed by our warehouse−lending facilities in 2011.
Loans Outstanding
Consumer mortgage loans held−for−sale for our Origination and Servicing operations were as follows.
December 31, ($ in millions) 2011 2010
Prime conforming $ 3,034 $ 5,585
Prime nonconforming — —
Prime second−lien — —
Government (a) 3,274 3,434
Nonprime — —
International — —
Total 6,308 9,019
Net premiums 80 132
Fair value option election adjustment 87 (61)
Lower−of−cost or fair value adjustment (5) (2)
Total, net $ 6,470 $ 9,088
(a) Includes loans subject to conditional repurchase options of $2.3 billion and $2.3 billion sold to Ginnie Mae−guaranteed securitizations at December 31, 2011 and 2010, respectively.
The corresponding liability is recorded in accrued expenses and other liabilities on the Consolidated Balance Sheet.
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