Walter Investment Management ($37.36 -0.73%) is expected to originate $12 billion via its correspondent and warehouse platforms in 2013 and 2014, while producing a gain-on-sale margin near 2.25%, according to Compass Point.

Walter Investment announced the acquisition of Ally Financial ($25.49 0.08%) correspondent/wholesale origination platforms. Upon completion, the transaction will include 300 corresponding lending and wholesale broker employees.  

During 2013, the total Ally/Residential Capital origination platform produced about $31 billion of originations and in 2010, was originating roughly $60 billion. This made it one of the top five originators in the U.S., Compass Point noted.

"We doubt WAC would return the origination platform back to those levels in the near-term, especially with origination volumes forecasted to decline to roughly $1 trillion in 2014 from $1.8 trillion in 2012, but it does show the capacity of the platform," said Kevin Barker of Compass Point.