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Ally Bank plans to dispose of business lending mortgage business

US-based Ally Bank has entered into an agreement to dispose of its business lending mortgage operations to Walter Investment Management, in an undisclosed deal.

The proposed deal, which includes the bank’s correspondent and wholesale broker origination channels and operations, is likely to complete on 28 February.

Under the terms of the agreement, the acquirer will get 300 mortgage professionals, 1,770 active client relationships and the intellectual property to operate the business.

Ally Bank president and chief executive officer Barbara Yastine said that the transaction will enable the bank to direct more resources towards priorities of growing its leading direct banking franchise, as well as supporting auto finance business.

On completion of the transaction, the employees and client relationships will be transferred to the acquirer, which expects to be fully operational in correspondent and wholesale originations on 1 March.

Operating as a direct lender in the US, Ally Bank provides online savings, interest checking, money market accounts, and certificates of deposits.

Based in Tampa, Florida, Walter Investment Management operates as an asset manager, mortgage servicer and originator with the help of 3,700 staff.