Ally Bank said Thursday that it plans to sell a portfolio of mortgage-servicing rights to Quicken Loans for approximately $280 million. The loans have an unpaid principal balance of $34 billion as of Jan. 31 and are expected to be refinanced after the sale.
The companies expect the sale to close in the second quarter, pending approval from Fannie Mae and Freddie Mac.
With this sale, the $94.8 billion-asset unit of Ally Financial, would complete its exit from the mortgage business. Earlier this month, Ally, which is majority owned by the U.S. government, announced it was selling a large portfolio of mortgage servicing rights to Ocwen Financial for $585 million. In February, it
"This agreement marks a key milestone for Ally and, upon successful completion of the [mortgage servicing rights] transactions, Ally Bank will have exited all the non-strategic mortgage activities," said Ally Bank President and Chief Executive Barbara Yastine in the news release. "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."
Detroit-based Quicken Loans has been aggressively building up its mortgage business in the last year. The company currently has a mortgage servicing pool of $90 billion, and it originated $70 billion of home loans in the last year, the third most in the country.
