Dan Gilbert’s Quicken To Pay $280M For $34 Billion Portfolio Of Fannie/Freddie Loans

 

Dan GilbertDow Jones Newswire via Fox Business Quicken Loans Inc., the online home lender, is buying a $34 billion mortgage-servicing portfolio from government-owned Ally Financial Inc. for about $280 million.

The deal will expand the size of Quicken’s servicing business by nearly 40% as it and a slew of other firms scoop up assets being shed by large banks are scaling back in the business, which involves collecting payments from and sending bills to mortgage borrowers.

Among those banks is Ally, which said Thursday the deal with Quicken represents its final chunk of servicing rights that it had yet to sell. The company has been focusing its efforts on running its core U.S. auto-lending operations and raising money to repay a $17.2 billion bailout it received during the financial crisis that left the U.S. government with a 74% ownership stake in the former General Motors Co. (GM) financing arm. Read more here

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