Detroit-based Quicken Loans Inc. has announced the purchase of approximately $34 billion in mortgage servicing rights (MSRs) from Ally Bank. The servicing pool comprises non-delinquent Freddie Mac- and Fannie Mae-backed mortgages that currently have higher-than-market interest rates which could substantially benefit from refinancing.
‘We have not been bashful in making the market aware of our interest in acquiring servicing rights,’ says Bill Emerson, CEO of Quicken Loans. ‘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.’
The company also announced that it will continue to pursue servicing pools, while also growing its servicing portfolio organically through its mortgage origination business. The new acquisition is expected to close in the second quarter.