Ally Bank Reaches Agreement to Sell Remaining Mortgage Servicing Rights
MIDVALE, Utah, March 21, 2013 /PRNewswire/ -- Ally Bank, the direct banking subsidiary of Ally Financial Inc., today announced that it has reached an agreement to sell its remaining agency mortgage servicing rights (MSR) portfolio to Quicken Loans. The portfolio is comprised of mortgage loans that are largely expected to be refinanced post-closing, based on interest rates that are above current market levels, and have an unpaid principal balance (UPB) of approximately $34 billion as of Jan. 31, 2013. The purchase price for the MSR asset is estimated to be approximately $280 million as of the end of January.
"This agreement marks a key milestone for Ally and, upon successful completion of the MSR transactions, Ally Bank will have exited all the non-strategic mortgage activities," said Ally Bank President and Chief Executive Officer Barbara Yastine. "Going forward, the Bank's full focus and resources will be centered on its leading direct banking franchise and advancing its customer-centric deposit activities, as well as continuing to grow its key role in Ally's auto finance operation."
The transaction is expected to close in the second quarter and is subject to approval by Fannie Mae and Freddie Mac.
On March 12, 2013, Ally announced the sale of approximately $90 billion UPB of MSR to Ocwen Financial Corp. Upon successful closing of the transactions with Ocwen and Quicken Loans, Ally will have no further MSR assets.
About Ally Bank
Ally Bank is a direct bank in the U.S. that offers a straightforward approach to banking with no minimum deposit required to open an account, no monthly maintenance fees and 24/7 live customer service. A subsidiary of Ally Financial Inc., the Bank offers online savings, interest checking, money market accounts, certificates of deposit with terms ranging from three months to five years, and IRA Plans and products. Member FDIC.
SOURCE Ally Financial