Ocwen Financial Corp. is buying a portfolio of mortgage servicing rights from Ally Bank for $585 million.

The mortgage loan portfolio contains loans with an unpaid principal balance of $85 billion. As part of the deal Ally has the right to sell Ocwen its remaining mortgage servicing rights portfolio in a subsequent transaction.

The deal is subject to regulatory approval from Fannie Mae and Freddie Mac. 

Ocwen, based in Dunwoody, Ga., is a mortgage loan servicer. In February the company bought mortgage lender ClearPoint from Gleacher & Co. Inc. The company, along with Walter Investment Management Corp. (NYSE: WAC) also won the auction for bankrupt Residential Capital LLC’s assets with a $3 million bid in October. Ocwen also agreed to buy Homeward Residential Holdings Inc. for $750 million in October. 

Ally Bank is the banking subsidiary of Ally Financial Inc. The deal was announced on March 12. 

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