Ally Bank exploring options for mortgage servicing operations
Ally Bank, the Midvale-based banking subsidiary of Ally Financial Inc., said it is exploring options for its mortgage servicing and business lending operations.
Those options could include a sale of one or both of those operations.
A mortgage servicer is responsible for the day-to-day management of individual mortgage loan accounts, including collecting and crediting monthly loan payments as well as handling any escrow accounts.
"Ally Bank has been recognized as a leading direct banking franchise and going forward our goal is to focus on our customer-centric deposit activities as well as supporting Ally's auto finance operation," Ally Bank President and CEO Barbara Yastine said in a statement.
She added the decision was made to explore alternatives for the mortgage servicing portfolio and business lending operations as they are no longer strategic activities for the bank.
The bank's mortgage servicing portfolio had an unpaid principal balance of approximately $122 billion of mortgage loans in the third quarter of 2012.
Ally Bank primarily provides funding for new and used vehicle inventory and consumer financing, leasing and commercial loans to automobile dealers across the country. It also offers retail online savings, interest checking, money market accounts, certificates of deposits and IRA plans.
As of June 30, the bank had total assets of $87.3 billion.