Just one year after telling investors that it planned to wade back into the mortgage waters, Ally Financial Inc. has taken a big step into submerging itself into real estate finance.
After allowing former subsidiary Residential Capital LLC to fall into bankruptcy in 2012, the New York-based firm in 2013 walked away from the mortgage business entirely.
But at the Goldman Sachs U.S. Financial Services Conference in New York in December 2015, Ally revealed plans to introduce limited direct mortgage originations this year.
Now the financial institution is being more bold about stepping back into home lending.
Subsidiary Ally Bank announced Monday Ally Home, a direct-to-consumer mortgage offering.
The Midvale, Utah-based bank
said it’s well postioned to serve a consumer shift towards digital, tech-driven experiences.
According to the statement, the offering
features products with varying term options for competitively priced, fixed-rate and adjustable-rate mortgages. It will handle refinancing and home purchase financing.
Digitally delivered services will be complimented by Ally “loan experts.” Following a loan application, prospective borrowers can choose whether they prefer to be contacted by phone or by email. Loan-related documents can be managed and uploaded from any device.
Ally said it has teamed up with LenderLive for mortgage fulfillment, settlement and document services.
“Because a home loan is a cornerstone financial product and the largest market within the consumer lending space, this is a natural next step for Ally,” Ally Bank Chief Executive Officer and President Diane Morais stated in the news release.
