Quicken Loans purchased $34 billion in mortgage servicing rights from Ally Bank (GMA), the company announced Thursday.
The servicing pool is comprised of non-delinquent Freddie Mac and Fannie Mae-backed mortgages, currently holding higher-than-market interest rates.
The acquisition is expected to close in the second quarter of 2013, following approvals from both government-sponsored enterprises.
In the last year, Quicken Loans built a $90 billion MSRs portfolio, increasing the company’s servicing footprint.
"We have not been bashful in making the market aware of our interest in acquiring servicing rights," said Bill Emerson, chief executive officer of Quicken Loans.
He added, "This transaction with Ally Bank allows us to purchase a well performing pool of loans, and will help grow our servicing footprint. This servicing pool will also create a large opportunity for Quicken Loans to refinance a substantial amount of these clients into significantly lower monthly payments."
With the addition of the $34 billion in servicing from Ally Bank, the company is expected to grow to a top-10 servicer by mid-year, Quicken Loans explained.