Ally Bank, the direct banking subsidiary of Ally Financial Inc., has reached an agreement to sell a portfolio of more than $85 billion in agency mortgage servicing rights to
The transaction comprises MSRs related to mortgages with an unpaid principal balance of approximately $85 billion as of Jan. 31, as well as an estimated $5 billion of agency MSRs created based on commitments made through the end of February. The purchase price for the MSR asset is estimated to be approximately $585 million as of the end of January, and the sale includes the transfer of the representation and warranty liabilities associated with the majority of the loans sold.
"Ally continues to make significant progress in exiting its nonstrategic mortgage activities," said Ally Bank president and CEO Barbara Yastine in a press release.
As part of the agreement, Ally also has the right to sell Ocwen its remaining MSR portfolio in a subsequent closing. This portfolio is in excess of $30 billion by UPB as of Jan. 31 and contains borrowers who have the ability to refinance in the near term.
“Ally has received interest in this portfolio from other financial institutions and is currently evaluating the best option for the bank,” the company said.
The transaction is expected to close in stages over the next few months and is subject to approval by Fannie Mae and Freddie Mac.
Separately, Ally Bank also completed the previously announced sale of its correspondent and wholesale broker mortgage operation on Feb. 28 to Walter Investment Management Corp.
