Ocwen Puts Up $585M For Ally Mortgage-Servicing Portfolio

Law360, New York (March 12, 2013, 1:30 PM EDT) -- Government-owned auto lender Ally Financial Inc. will unload a portfolio of mortgage-servicing rights to Ocwen Financial Corp. for about $585 million as part of a broad-scale plan it unveiled last fall to shed noncore assets, Ally's banking subsidiary said Tuesday.

In the transaction, Florida-based Ocwen will pick up the rights to service a bundle of mortgage loans with a combined unpaid balance of $90 billion. The deal's terms also cover the representation and warranty liabilities associated with a bulk of the loans, according to Ally Bank....
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