Ally Financial Inc. originated $6.1 billion in prime conforming loans in the first quarter as the company continues to shut down its origination pipeline and exit the mortgage business.
“We are working rapidly through the final locks in our pipeline, which should wrap up this quarter,” a company executive said during a conference call on the bank’s first-quarter results.
Ally completed the sale of it correspondent and wholesale lending channels to Walter Investment Management Corp. on March 1.
And the Detroit-based bank completed a $115 billion (UPB) mortgage servicing rights sale on April 16 to Walter Investment and Quicken Loans. Quicken purchased a $34 billion slice of the servicing pool.
AFI executives expect to close the sale of $5 billion in
“Ally has of now effectively exited the mortgage business,” said AFI chief executive Michael Carpenter during Wednesday’s conference call.
All that is left will be $10 billion in mortgages that Ally Bank will hold in its investment portfolio. Back in 2006, the bank had a $135 billion in mortgage portfolio.
AFI remains in negotiations with creditors of its former subprime lending subsidiary Residential Capital LLC. Ally has offered the
“We hope for a consensual resolution,” the CEO said, “but are highly confident of our position in litigation if that is necessary.”
