Ally Exits Mortgage Servicing Biz In $34B Portfolio Sale

Law360, New York (March 21, 2013, 11:55 AM EDT) -- Auto lender Ally Financial Inc. on Thursday continued its push to shed assets to pay down billions of dollars in debt tied to its government bailout, saying it will pass off a mortgage-rights servicing portfolio to Quicken Loans Inc. in exchange for $280 million.

The deal gives Quicken a new portfolio with an unpaid balance of $34 billion, covering nondelinquent loans backed by Freddie Mac and Fannie Mae that, with higher-than-market interest rates, are ripe for refinancing. Unloading the portfolio clears Ally of its last mortgage-servicing...
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