Quicken Loans has reached an agreement with Ally Bank to acquire its remaining mortgage servicing rights portfolio.
The $34 billion servicing pool is made up of performing Freddie Mac and Fannie Mae-backed mortgages that currently have higher-than-market interest rates that are expected to be refinanced post-closing.
As of the end of January, the purchase price for the MSR asset is estimated to be approximately $280 million.
Detroit-based Quicken Loans said the acquisition is expected to close in the second quarter following approvals from the government-sponsored enterprises.
“We have not been bashful in making the market aware of our interest in acquiring servicing rights and this transaction with Ally Bank will help grow our servicing footprint,” said Bill Emerson, CEO of Quicken Loans in a press release. “This servicing pool will also create a large opportunity for Quicken Loans to refinance a substantial amount of these clients into significantly lower monthly payments.”
In the last year,
Quicken Loans said it will continue to pursue other servicing pools organically through its mortgage origination business. In 2012, the company recorded $70 billion in residential home mortgages, making it the nation’s third largest mortgage lender.
Earlier this month,
“Going forward, the Bank’s full focus and resources will be centered on its direct banking franchise and advancing its customer-centric deposit activities, as well as continuing to grow its key role in Ally’s auto finance operation,” said Barbara Yastine, president and chief executive officer of Ally Bank.