Ocwen Financial Corp is in the lead to buy Ally Bank's $122 billion of mortgage servicing rights, two sources familiar with the situation said on Thursday.

The deal is expected to be valued at around $1 billion, said one of the sources, who declined to be identified because details of the auction are not public.

Ally received five bids for the MSRs, and the winner is expected to be announced shortly, the source said.

An Ally spokeswoman declined to comment. A call to Ocwen was not immediately returned.

Auto lender Ally Financial, the parent of Ally Bank, announced in October that it was selling $122 billion of mortgage servicing rights.

(Reporting By Jessica Toonkel in New York, Rick Rothacker in Charlotte; editing by John Wallace)