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Ally Bank agrees to dispose of mortgage servicing rights to Ocwen Financial

US-based Ally Bank has entered into an agreement to dispose of its portfolio of agency mortgage servicing rights (MSR) to Ocwen Financial, in a deal valued at nearly $585m.

Based on terms of the agreement, the transaction includes transfer of representation and warranty liabilities associated with majority of the loans sold.

Commenting on the agreement, Ally Bank president and CEO Barbara Yastine said the sale will enable the bank to invest all available resources in direct banking franchise while concentrating on customer-centric deposit activities.

Pending receipt of approval from Fannie Mae and Freddie Mac, the transaction is likely to conclude in stages over the next few months.

Ally has also agreed to offload its remaining MSR portfolio, which is in excess of $30bn by UPB as of 31 January 2013, to Ocwen in a subsequent closing as part of the agreement.

The bank has recently closed the previously announced sale of its correspondent and wholesale broker mortgage operation to Walter Investment Management.

A subsidiary of Ally Financial, the bank operates as a direct lender and caters online savings, interest checking, money market accounts, and certificates of deposit with terms ranging from three months to five years, among others.