Residential Finance

Founded in 1997, Residential Finance Corporation (ResFin) grew to become one of the largest mortgage lenders and servicers in the United States. As a subsidiary of Ally Financial (formerly GMAC), it specialized in originating, purchasing, and servicing residential mortgage loans. The company played a significant role in the mortgage market but was severely impacted by the 2008 financial crisis. It faced massive liabilities and lawsuits related to misrepresentation in the sale of mortgage-backed securities. Unable to manage these legacy claims, the company filed for Chapter 11 bankruptcy on May 14, 2012, and its assets were subsequently sold to other financial institutions, such as Ocwen Financial and Walter Investment Management Corp.