GMAC To Pay $462M To Avoid Fannie Buyback Demand On $292B In Crappy Loans

Reuters reports:

• Ally Financial Inc, the lender formerly known as GMAC, on Monday said it agreed to pay $462 million to Fannie Mae to avoid having to repurchase poorly underwritten mortgages sold to the housing finance giant.

• Ally, which is majority-owned by U.S. taxpayers, said the agreement releases its Residential Capital LLC mortgage unit from any liability related to bad underwriting on $292 billion worth of loans sold to Fannie Mae, itself about 80 percent owned by the government. Residential Capital owns GMAC Mortgage and Ditech Funding.

For more, see Ally Financial in $462 million settlement with Fannie.