U.S. Bancorp’s (USB) bank, U.S. Bank National Association, entered an agreement to purchase the document custodian business of Ally Bank.
As a document custodian, U.S. Bank stores and safeguards a wide array of collateral loan files, including commercial and residential mortgages, equipment leases, home equity and improvement loans and vehicle loans and leases.
U.S Bancorp will add up to 40 employees, one new service location in Waterloo, Iowa, and increase documents under custody by 15%.
"This transaction is the most recent in a string of investments U.S. Bank has made in our growing corporate trust services business," said Bryan Calder, president of U.S. Bank Global Corporate Trust Services.
"This acquisition provides us with an additional growth opportunity and is consistent with our position as a leading provider of third-party custodian services nationwide,” Calder said.
Ally began walking away from mortgages back in 2012 and has witnessed a strong boost in its profits by doing so.
"The steps we are taking, coupled with the strength of the underlying auto finance and direct banking franchises, will support Ally's plan to repay the remaining U.S. Treasury investment and thrive going forward," said Ally CEO Michael Carpenter back in November 2012.
Ally planned to be done with the majority of its mortgage business by the end of 2013.