Ally Bank, the subsidiary of Ally Financial, announced that it has reached an agreement to sell its Business Lending mortgage operation to Walter Investment Management Corp.
The sale price was not disclosed, but the transaction is expected to close on Feb. 28.
The deal includes 300 mortgage employees, 1,770 client relationships and the intellectual property to operate the business.
Ally Bank will honor all commitments taken through Feb. 28. Upon closing, the employees and client relationships will transfer to Walter Investment (WAC). The company expects to be fully operational in correspondent and wholesale originations on March 1.
Ally Bank will continue to orignate jumbo and conventional conforming residential mortgages for its own portfolio through a select group of correspondent lenders, the company noted.
On Feb. 14, Ally Financial satisfied a requirement to provide $200 million in home loan modifications and other consumer relief under the $25 billion national mortgage settlement.
