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.
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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)