Feb 18 Ally Financial Inc's banking subsidiary
said on Monday it agreed to sell a mortgage unit to Walter
Investment Management Corp as the U.S. auto lender
continues to pull back from the home loan business.
Ally Bank said in October that it was selling its business
lending operation, which buys mortgages from other lenders and
makes loans through brokers. The transaction, which includes 300
employees, is expected to close on Feb. 28.
The companies did not disclose the terms of the deal.
Ally Financial, which is 74 percent owned by the U.S.
government after a series of bailouts, is focusing on U.S. auto
lending and Internet banking as it works to pay back taxpayers.
In May, the lender's Residential Capital mortgage unit filed for
bankruptcy, and Ally announced plans to sell its international
Ally Bank also said in October that it was selling
collection rights on $122 billion in mortgages. Reuters reported
last month that Ocwen Financial Corp was in the lead to
buy the portfolio.
Ally Bank has said it plans to continue making a "modest
level" of jumbo and conventional mortgages through third-party