Ally Financial Inc., which hopes to go public this year, has agreed to sell $1.25 billion of bonds related to excess mortgage servicing rights.
According to a company spokesman, the transaction is expected to close by the end of March. "This is part of the ongoing management of our portfolio of assets, and we are pleased with the market response to the transaction," a company spokesman told National Mortgage News.
Ally, a bank holding company controlled by the U.S. government, is the parent of Residential Capital Corp., Minneapolis, which funded $22.23 billion of residential loans in the fourth quarter, ranking fifth nationwide. Among servicers, it ranks fifth in that category as well with $384 billion of receivables on its books, according to the Quarterly Data Report.
ResCap also uses the brand name GMAC Mortgage. According to figures compiled by NMN, among the nation's top five servicers, Ally has one of the highest ratios of MSRs to capital.
