The Federal Reserve said that Ally Financial Inc.'s GMAC Mortgage will pay borrowers compensation for handling foreclosures improperly. GMAC Mortgage will pay a total of USD 230 million to 232,000 borrowers as settlement to homeowners who claimed that their homes were improperly seized by the mortgage servicer. The deal that GMAC Mortgage agreed with the regulators was similar to that of 13 others this year. 

Residential Capital spokeswoman Tammy Hamzehpour told Bloomberg through email that they are relieved. "We're relieved to be able to distribute these funds directly to borrowers rather than spend the time and money with consultants to complete the file review. That process would not have returned anywhere near as much money, to as many potentially harmed borrowers, as will this settlement," she said. Residential Capital is part of the Ally mortgage unit that filed for bankruptcy in 2012. The settlement payments will come from the Residential Capital estate.