Ally Bank has sold its correspondent and wholesale mortgage production operations (the segment the company terms “business lending”) to Walter Investment Management Corp. Terms of the deal were not disclosed.

Previously in a joint bid with Ocwen, Walter had purchased a portion of the ResCap mortgage servicing portfolio. It also purchased the ResCap originations and capital markets business at the end of January.

Walter has been an active buyer of servicing portfolios, starting with Green Tree and more recently buying portfolios from Bank of America and MetLife.

At the end of 3Q12, the most recent quarter for which has information, Ally was the fifth largest correspondent lender with volume of $7.4 billion generated through the channel, out of $8 billion in total volume.

In 4Q12, Ally produced $10 billion in the quarter from all channels, down from $16 billion in 4Q11. The year-over-year decline was a result of a cutback in the correspondent purchase channel, the company’s results release said.

The deal is expected to close Feb. 28. Ally will honor all commitments taken through that date. After the deal closes, the unit’s 300 employees and 1,770 active client relationships transfer to Walter.

Ally said it plans to do a “modest” amount of jumbo and conforming residential mortgages for its own portfolio. These loans will be purchased from a “select group” of correspondents.

On the origination side, Walter already has a retail and TPO reverse mortgage lending business through its purchases of RMS and Security One Lending.

Mark J. O’Brien, chairman and CEO of Walter, said the deal gives his company “a team of knowledgeable, experienced employees with which to pursue correspondent lending opportunities, using the outstanding capabilities resident in the recently acquired ResCap originations platform.”

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