Securitizations and Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2018

Securitizations And Variable Interest Entities [Abstract]

The following table presents our involvement in consolidated and nonconsolidated VIEs in which we hold variable interests. For additional detail related to the assets and liabilities of consolidated variable interest entities refer to the Consolidated Balance Sheet.



December 31, ($ in millions)	Carrying value of total assets			Carrying value of total liabilities			Assets sold to nonconsolidated VIEs (a)		Maximum exposure to loss in nonconsolidated VIEs
2018
On-balance sheet variable interest entities
Consumer automotive	$	16,255	(b)	$	6,573	(c)
Commercial automotive	11,089			3,946
Off-balance sheet variable interest entities
Consumer automotive (d)	45		(e)	—			$	1,235	$	1,280	(f)
Commercial other	806		(g)	326		(h)	—		1,054		(i)
Total	$	28,195		$	10,845		$	1,235	$	2,334
2017
On-balance sheet variable interest entities
Consumer automotive	$	17,597	(b)	$	7,677	(c)
Commercial automotive	12,550			2,558
Off-balance sheet variable interest entities
Consumer automotive	37		(e)	—			$	1,964	$	2,001	(f)
Commercial other	592		(g)	248		(h)	—		790		(i)
Total	$	30,776		$	10,483		$	1,964	$	2,791


(a)	Asset values represent the current unpaid principal balance of outstanding consumer finance receivables and loans within the VIEs.


(b)	Includes $8.4 billion and $8.5 billion of assets that were not encumbered by VIE beneficial interests held by third parties at December 31, 2018, and December 31, 2017, respectively. Ally or consolidated affiliates hold the interests in these assets.


(c)	Includes $25 million and $29 million of liabilities that were not obligations to third-party beneficial interest holders at December 31, 2018, and December 31, 2017, respectively.

(d)

In September 2018, we sold residual interests related to an on-balance sheet VIE to an unrelated third party. As a result of this sale, we are no longer the primary beneficiary of the VIE, and as such have deconsolidated its assets and liabilities from our Consolidated Balance Sheet including $545 million and $497 million of consumer automotive loans and long-term debt, respectively. We received cash proceeds of $24 million related to this sale, and recognized a pretax gain on sale of $1 million. We will continue to service the assets previously transferred to the VIE.

(e)

Represents retained notes and certificated residual interests, of which $43 million and $36 million were classified as held-to-maturity securities at December 31, 2018, and December 31, 2017, respectively, and $2 million and $1 million were classified as other assets at December 31, 2018, and December 31, 2017, respectively. These assets represent our compliance with the risk retention rules under the Dodd-Frank Act, requiring us to retain at least five percent of the credit risk of the assets underlying asset-backed securitizations.

(f)

Maximum exposure to loss represents the current unpaid principal balance of outstanding loans, retained notes, certificated residual interests, as well as certain noncertificated interests retained from the sale of automotive finance receivables. This measure is based on the very unlikely event that all of our sold loans have defects that would trigger a representation and warranty provision and the underlying collateral supporting the loans becomes worthless. This required disclosure is not an indication of our expected loss.


(g)	Amounts are classified as other assets.


(h)	Amounts are classified as accrued expenses and other liabilities.

(i)

For certain nonconsolidated affordable housing entities, maximum exposure to loss represents the yield we guaranteed investors through long-term guarantee contracts. The amount disclosed is based on the unlikely event that the underlying properties cease generating yield to investors and the yield delivered to investors in the form of low income tax housing credits is recaptured. For nonconsolidated equity investments, maximum exposure to loss represents our outstanding investment, additional committed capital, and low income housing tax credits subject to recapture. The amount disclosed is based on the unlikely event that our committed capital is funded, our investments become worthless, and the tax credits previously delivered to us are recaptured. This required disclosure is not an indication of our expected loss.

Securitization and Variable Interest Entities On-balance Sheet Variable Interest Entities [Table Text Block]

The assets of consolidated VIEs that can be used only to settle obligations of the consolidated VIEs and the liabilities of those entities for which creditors or beneficial interest holders do not have recourse to our general credit were as follows.



December 31, ($ in millions)	2018			2017
Assets
Finance receivables and loans, net
Consumer	$	7,282		$	8,186
Commercial	10,804			12,437
Allowance for loan losses	(114		)	(136		)
Total finance receivables and loans, net	17,972			20,487
Investment in operating leases, net	164			444
Other assets	767			689
Total assets	$	18,903		$	21,620
Liabilities
Long-term debt	$	10,482		$	10,197
Accrued expenses and other liabilities	12			9
Total liabilities	$	10,494		$	10,206

Schedule Of Cash Flow Received And Paid To Nonconsolidated Securitization Entities

The following table summarizes cash flows received and paid related to SPEs and asset-backed financings where the transfer is accounted for as a sale and we have a continuing involvement with the transferred consumer automotive assets (e.g., servicing) that were outstanding during the years ended December 31, 2018, 2017, and 2016. Additionally, this table contains information regarding cash flows received from and paid to nonconsolidated SPEs that existed during each period.



Year ended December 31, ($ in millions)	Consumer automotive			Consumer mortgage
2018
Cash proceeds from transfers completed during the period	$	24		$	—
Cash flows received on retained interests in securitization entities	20			—
Servicing fees	18			—
Cash disbursements for repurchases during the period	(4		)	—
Representation and warranty recoveries	—			2
2017
Cash proceeds from transfers completed during the period	$	1,187		$	—
Cash disbursements for repurchases during the period (a)	(491		)	—
Servicing fees	31			—
Cash flows received on retained interests in securitization entities	21			—
Other cash flows	4			—
2016
Cash proceeds from transfers completed during the period	$	1,715		$	—
Servicing fees	35			—
Other cash flows	8			—


(a)	During the second quarter of 2017, we elected to not renew a consumer automotive credit conduit facility and also purchased the related consumer automotive loans and settled associated retained interests.

Schedule of Quantitative Information and Net Credit Losses about Securitized and Other Financial Assets Managed Together

The following tables present quantitative information about delinquencies and net credit losses for off-balance sheet securitizations and whole-loan sales where we have continuing involvement.



	Total amount				Amount 60 days or more past due
December 31, ($ in millions)	2018		2017		2018		2017
Off-balance sheet securitization entities
Consumer automotive	$	1,235	$	1,964	$	13	$	16
Whole-loan sales (a)
Consumer automotive	634		1,399		3		4
Total	$	1,869	$	3,363	$	16	$	20


(a)	Whole-loan sales are not part of a securitization transaction, but represent consumer automotive pools of loans sold to third-party investors.



	Net credit losses
Year ended December 31, ($ in millions)	2018		2017
Off-balance sheet securitization entities
Consumer automotive	$	10	$	13
Whole-loan sales (a)
Consumer automotive	2		3
Total	$	12	$	16


(a)	Whole-loan sales are not part of a securitization transaction, but represent consumer automotive pools of loans sold to third-party investors.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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