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 operations.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 purchase the portfolio.
Ocwen Financial Corporation (Ocwen), through its subsidiaries, is a provider of residential and commercial mortgage loan servicing, special servicing and asset management services. Shares of OCN fell by 1.15% or $-0.47/share to $40.56. In the past year, the shares have traded as low as $14.40 and as high as $41.87. On average, 1785550 shares of OCN exchange hands on a given day and today's volume is recorded at 1848028.
Walter Investment Management Corp., together with its subsidiaries, is a fee-based business services provider to the residential mortgage industry. Shares of WAC traded higher by 0.56% or $0.27/share to $48.81. In the past year, the shares have traded as low as $17.87 and as high as $49.67. On average, 513994 shares of WAC exchange hands on a given day and today's volume is recorded at 444472.
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