Ally Bank today announced that it has reached an agreement to sell a portfolio of agency mortgage servicing rights (MSR) to Ocwen Financial Corp. for an estimated price of $585 million.
The transaction comprises MSRs with an unpaid principal balance of $85 billion as of January 31, 2013, as well as an estimated $5 billion of agency MSR based on commitments made through the end of February.
Under the agreement, Ally also has the right to sell Ocwen its remaining MSR portfolio in a subsequent closing, a portfolio in excess of $30 billion by unpaid principal balance that also contains borrowers who have the ability to refinance in the near term.
The transaction is expected to close over the next few months and is also subject to approval by Fannie Mae and Freddie Mac.
Last month, Ally announced the sale of its correspondent and wholesale broker mortgage operation to Walter Investment Management Corp.
The Ally deal is the latest in Ocwen’s mortgage servicing rights buy up.
Earlier this month, the company said it is looking to close a deal to acquire Liberty Home Equity Solutions sometime in the next 30 days.
Also included in the company’s portfolio are billions of dollar in mortgage servicing rights formerly owned by Residential Capital, LLC and Homeward Residential, Inc.
Written by Jason Oliva