The residential mortgage division of Ally Financial missed a scheduled payment on its debt Tuesday, laying the ground work for an eventual default if the payment is not made quickly.
According to a new filing with the Securities and Exchange Commission (SEC), Residential Capital Corp. (ResCap), an Ally subsidiary “did not make a semi-annual interest payment” on $1.75 billion of debt tied to notes yielding 6.5%.
The notes are due in 2013 with $473 million of principal currently outstanding.
The firm says in the filing: “The Indenture provides that a failure to pay interest on an interest payment date does not become an Event of Default (as defined in the Indenture) unless such failure continues for a period of 30 days.”
A spokeswoman for the bank holding company said Ally will not be commenting at this time.
ResCap/GMAC is the nation’s sixth largest home mortgage lender, and fifth largest servicer, according to figures compiled by National Mortgage News and the Quarterly Data Report.
Ally is 74% owned by the U.S. Treasury. ResCap has been undergoing costs cuts and recently shuttered its MBS trading desk and halted third-party GNMA lending.
The new SEC filing was signed by David J. DeBrunner, who is listed as the firm’s vice president, chief accounting officer and controller.
