Ally Home Loans: Bank Now Offers Retail Mortgages to Its Customers

Ally Home Loans: Bank Now Offers Retail Mortgages to Its Customers

You may remember GMAC Bank, which was taken down by its fateful mortgage arm Residential Capital (ResCap) before eventually requiring a government bailout.

It wasn’t an uncommon story at the time; many other mega mortgage companies took a fall too, including the likes of Countrywide and IndyMac.

Anyway, ResCap was a big mortgage player back in the day, originating billions of residential mortgages in the lead up to the housing bubble. Then it all came crashing down…

Once the company recovered from the financial crisis, it rebranded itself as Ally Financial, offering auto loans and high-yield savings accounts.

The auto loan portion of the business runs deep in its history seeing that GMAC stood for General Motors Acceptance Corporation.

They’re Back…with a Brand New Name

Somehow these large companies have a way of reinventing themselves, with fresh new names and logos that can make us all forget the ugly past very quickly.

And so without further ado, say hello to “Ally Home,” which is the company’s new direct-to-consumer mortgage offering.

It’s yet another home loan option available to borrowers in the post-crisis mortgage world.

Like other lenders, they will offer both purchase and refinance mortgages, including rate and term and cash-out refis.

Additionally, Ally Home will offer conventional and jumbo mortgages, the latter of which are above the conforming loan limit of $417,000 (soon to be $424,100).

As of the time of this writing, Ally Home Loans was offering a rate of 4.25% on a 30-yr fixed purchase, and 4.375% for a refi, with lots of assumptions like good credit and a minimum 20% down payment.

Today's Rates

Interestingly, their jumbo mortgage rates seem to be cheaper than their conforming ones, so it might be a good place to send a larger loan.

In terms of mortgage choice, you’ll be able to get a 30-yr or 15-yr fixed, or less common varieties such as the 25-yr, 20-yr, and 10-yr fixed.

The company will also offer a selection of hybrid ARMs, including the 10/1, 7/1, and 5/1.

So they’ve basically got you covered when it comes to loan options unless you’re looking for something super unique.

Ally Home Wants to Deliver a High-Touch Experience

Unlike a lot of mortgage newcomers, Ally Home wants to be super involved with you throughout the underwriting process.

They refer to it as a “high-touch experience” in which customers are guided through the entire home loan journey with a knowledgeable stable of so-called “dedicated loan experts.”

This runs counter to some of the fintech startups that cater to Millennials who apparently don’t ever want to speak to another human, ever.

That’s totally fine, but it appears Ally wants to bring back the human element and focus heavily on customer service with its group of loan advisors, loan coordinators, and closing coordinators known as the Ally Home Team.

This will include dedicated support, frequent loan updates, online access to all loan-related documents from any device, and a variety of communication options like text, phone, or e-mail.

Ally Home has also partnered with LenderLive to handle mortgage fulfillment, settlement and document services in an expeditious and compliant manner.

The hope is to provide the best possible mortgage experience by combining the best people with the best technology in the industry.

If you’re keeping track, three of the largest mortgage lenders during the prior boom have now risen from the ashes.

Former Countrywide execs successfully launched PennyMac, IndyMac transformed into OneWest Bank, and ResCap’s parent company has now introduced Ally Home.

It has been a pretty wild decade.

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