March 21 Auto lender Ally Financial Inc's
banking unit said it would sell its remaining mortgage servicing
rights portfolio to online lender Quicken Loans Inc for about
Ally, which is 74 percent-owned by the U.S. government after
a series of bailouts, has been exiting the mortgage business as
part of a plan to focus on auto lending and Internet banking.
Detroit-based Quicken is buying collection rights on $34
billion of non-delinquent Freddie Mac and Fannie Mae
mortgages. Quicken, which has a $90 billion mortgage
servicing portfolio, said it would become a top-10 servicer
after the purchase.
The transaction is expected to close in the second quarter
and is subject to approvals from Fannie Mae and Freddie Mac.
Earlier this month, Ally, the former lending arm of General
Motors, said it was selling about $90 billion of mortgage
servicing rights (MSR) to Ocwen Financial Corp.
Ally, also based in Detroit, will have no further MSR assets
once it closes the transactions with Ocwen and Quicken.
Ally received $17.2 billion in bailouts during the financial
crisis after losses ballooned in its subprime mortgage
portfolio. It says it has paid back $5.9 billion, including
The lender's Residential Capital mortgage unit filed for
bankruptcy in May 2012, and Ally has been selling international
operations in a bid to speed up repayment to taxpayers.
The U.S. Federal Reserve this month singled out Ally as the
weakest of 18 banks in an annual stress test meant to show how
they would fare in a severe economic downturn. [ID: nL1N0C0AMK]