Ally Bank inks accord to sell mortgage rights

Ally Bank today announced that it has reached an agreement to sell a portfolio of agency mortgage servicing rights (MSR) to Ocwen Financial Corp. The transaction comprises MSRs related to mortgage loans with an unpaid principal balance (UPB) of approximately $85 billion as of Jan. 31, 2013, as well as an estimated $5 billion of agency MSR created based on commitments made through the end of February.

The purchase price for the MSR asset is estimated to be approximately $585 million as of the end of January, and the sale includes the transfer of the representation and warranty liabilities associated with the majority of the loans sold.

Ally continues to make significant progress in exiting its non-strategic mortgage activities. Going forward, the Bank's full focus and resources will be centered on its leading direct banking franchise and advancing its customer-centric deposit activities, as well as continuing to grow its key role in Ally's auto finance operation, said Ally Bank President and Chief Executive Officer Barbara Yastine.

As part of the agreement, Ally also has the right to sell Ocwen its remaining MSR port- folio in a subsequent closing.

This portfolio is in excess of $30 billion by UPB as of Jan. 31, 2013 and contains borrowers who have the ability to refinance in near term.