Ally Financial Inc.'s banking subsidiary said that it agreed to sell a mortgage unit to Walter Investment Management Corp. as the U.S. auto lender continues to pull back from the home loan business, Reuters reported yesterday. Ally Bank said in October that it was selling its business lending operation, which buys mortgages from other lenders and makes loans through brokers. The transaction, which includes 300 employees, is expected to close on Feb. 28. Ally Financial, which is 74 percent owned by the U.S. government after a series of bailouts, is focusing on U.S. auto lending and Internet banking as it works to pay back taxpayers.
