Ocwen to Acquire Ally Mortgage Servicing Rights

Published March 12, 2013

| Reuters

Ally Bank, the banking subsidiary of Ally Financial, is selling the majority of its mortgage servicing rights portfolio to Ocwen Financial Corp for $585 million, the bank said on Tuesday.

The deal will help Ally, the bailed-out auto lender that is 74%-owned by the U.S. government, raise money to pay back taxpayers.

Under the deal, Ocwen will have the right to collect payments on $90 billion of loans, the bank said. As part of the agreement, Ally has the right to sell its remaining mortgage servicing rights portfolio, which is in excess of $30 billion, to Ocwen.

For Ocwen, the purchase will further fuel its explosive growth. The company's servicing portfolio has increased in size by more than six times since 2009, according to Compass Point Research & Trading.

Reuters reported that Ocwen was in the lead to by Ally's MSR portfolio earlier this year.

 

Ally Bank, the banking subsidiary of Ally Financial, is selling the majority of its mortgage servicing rights portfolio to Ocwen Financial Corp for $585 million, the bank said on Tuesday.

The deal will help Ally, the bailed-out auto lender that is 74 percent-owned by the U.S. government, raise money to pay back taxpayers.

Under the deal, Ocwen will have the right to collect payments on $90 billion of loans, the bank said. As part of the agreement, Ally has the right to sell its remaining mortgage servicing rights portfolio, which is in excess of $30 billion, to Ocwen.

For Ocwen, the purchase will further fuel its explosive growth. The company's servicing portfolio has increased in size by more than six times since 2009, according to Compass Point Research & Trading.

Reuters reported that Ocwen was in the lead to by Ally's MSR portfolio earlier this year.

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