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Ally Bank wraps up divestment of MSR portfolios to Ocwen, Quicken Loans.


18 April 2013 - US Ally Bank said it had closed sales of some USD115bn (EUR88.2bn) unpaid principal balance (UPB) of agency mortgage servicing rights (MSR) to Ocwen Financial Corp (NYSE:OCN) and Quicken Loans Inc.

The lender, which is part of Ally Financial Inc (NYSE:GMA), bagged an aggregate USD850m of proceeds from the deals, which were announced in March. The final proceeds are adjustable based on actual UPB as of the closing dates.

With the closing regarding an additional USD5bn UPB of remaining MSR to be carried out in stages in the coming months, Ally will have exited its MSR assets.

Having disposed of non-strategic mortgage activities, Ally Bank will be now concentrating on its direct banking franchise and customer-centric deposit activities, as well as its role in the auto finance operation, the lender's CEO, Barbara Yastine, said.

In March, Ally Bank said it agreed to sell MSRs with UPB of USD34bn to Quicken Loans for USD280m and MSR with UPBA ofA USD90bn to Ocwen for USD585m, with the prices beingA estimatedA as at end-January.Country: USASector: Banking/Financial ServicesTarget: MSRsBuyer: Quicken Loans Inc, Ocwen Financial Corp Vendor: Ally BankDeal size in USD: 850mType: DivestmentStatus: ClosedComment: Deal size refers to aggregate proceeds from the sales.

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Publication:M & A Navigator
Date:Apr 18, 2013
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