Residential Capital, LLC (ResCap) was a wholly-owned subsidiary of Ally Financial Inc. (formerly GMAC). It was a leading originator, servicer, and securitizer of residential mortgage loans in the U.S. During the housing boom, ResCap became one of the largest subprime lenders. The company was severely impacted by the 2008 financial crisis due to massive losses on its mortgage portfolio and obligations related to mortgage-backed securities it had sold. Facing overwhelming lawsuits and regulatory pressure related to faulty foreclosures and misleading investors, ResCap filed for Chapter 11 bankruptcy in May 2012. The company's assets were subsequently sold off, and it was wound down in a liquidation plan confirmed in December 2013.

Founded in

United States