Ally Bank has completed the sales of approximately $115 billion in unpaid principal balance of agency mortgage servicing rights to Ocwen Financial Corp. and Quicken Loans Inc. and inching closer to its short-term goals.
This transaction brings the total amount of
Approximately $5 billion in UPB of remaining MSRs is expected to close in stages over the coming months.
The sale marks “significant progress this year” in Ally’s measures to exit “non-strategic mortgage activities,” said president and CEO Barbara Yastine.
In March Ally announced the sale of approximately $90 billion in UPB of MSRs to Ocwen noting that following the closing of
After the completion of the MSR sales, Yastine said, Ally will focus “squarely on its leading direct banking franchise and advancing its customer-centric deposit activities,” as well as continue to grow its auto finance operation.
Earlier in April Ally Financial Inc. completed the sale of the majority of its operations in Europe and Latin America to General Motors Financial Co. Inc. receiving approximately $2.6 billion in total proceeds from $2.4 billion at closing and $190 million in dividends paid prior to the closing.
Ally reported that it has received $6.7 billion in proceeds from the international transactions thus far and is in the process of selling operations in France and Brazil, as well as the joint venture stake in China, during 2013.
According to Ally CEO Michael Carpenter, the completion of these transactions “marks another major step” in Ally's strategy to focus on its core U.S.-based franchises. "We remain committed to further advancing our strategic plans and best positioning Ally to repay the U.S. taxpayer's investment," he said.
