""Walter Investment Management Corp."":http://www.walterinvestment.com/ has signed a definitive agreement to acquire ""Ally Bank's"":http://www.ally.com/ business lending operations, the company announced.[IMAGE]
The transaction is expected to close on February 28, though terms were not disclosed. Upon the completion of the transaction, Walter expects it will employ approximately 300 of Ally's correspondent and wholesale lending employees.
""This transaction brings to Walter Investment a team of knowledgeable, experienced employees with which to pursue correspondent lending opportunities, using the [COLUMN_BREAK]
outstanding capabilities resident in the recently acquired ResCap originations platform,"" said Mark O'Brien, chairman and CEO of Florida-based Walter Investment. ""We look forward to working with this team as we execute on our strategic plans for the originations business.""
The deal represents a major step in Ally's ongoing move away from the mortgage business. The bank ""announced last year"":http://www.themreport.com/articles/ally-exploring-options-to-cut-loose-remaining-mortgage-business-2012-10-26 its intent to ""explore strategic alternatives"" for its agency mortgage servicing rights and its business lending operations.
""We are pleased to be transferring Business Lending to a well-respected, strategic buyer like Walter, who values the high quality of our people, platform and relationships and is committed to building its origination capabilities,"" said Ally Bank president and CEO Barbara Yastine. ""This is a positive outcome for our 300 Business Lending employees and enables Ally Bank to direct more resources toward our priorities of growing our leading direct banking franchise, as well as supporting Ally's auto finance operation.""
As previously announced, Ally Bank will continue to originate ""a modest level"" of jumbo and conventional conforming home mortgages for its own portfolio through a group of correspondent lenders.