Posted at: 03/21/2013 2:11 PM
DETROIT (AP) - Quicken Loans Inc. says it has bought the servicing rights to about $34 billion in mortgages from Ally Financial Inc.
Detroit-based Quicken said Thursday that the loans are non-delinquent Freddie Mac and Fannie Mae-backed mortgages that currently have higher-than-market interest rates that "could substantially benefit from refinancing."
Quicken says the deal is expected to close in the second quarter following approvals from Fannie Mae and Freddie Mac.
The company says the deal "will dramatically increase" Quicken's mortgage servicing business, which had $90 billion in mortgages before the deal.
Detroit-based Ally Financial says the value of the mortgage servicing portfolio was about $280 million in January. Ally is a spinoff from General Motor's former lending arm, GMAC.
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