Key Takeaways
- Wells Fargo agreed to sell the non-agency third-party servicing segment of its commercial mortgage servicing business to privately held Trimont.
- The deal makes Trimont the largest loan servicer in the U.S., it said.
- Wells Fargo is prioritizing “businesses that are core to [its] consumer and corporate clients,” according to its head of commercial real estate.
Wells Fargo (WFC) is selling much of its commercial mortgage servicing business to Trimont, the bank said Tuesday. Financial terms weren’t disclosed but the transaction is expected to close in early 2025.
The deal makes Atlanta-based Trimont the largest loan servicer in the U.S., giving it roughly 11% of the commercial real estate lending market, it said. Wells Fargo will unload the non-agency third-party servicing segment of its business, while continuing to service its agency/government-sponsored enterprise (GSE) loans and those held on its balance sheet.
Loan servicing refers to the administrative aspects of a loan, from the time the proceeds are dispersed to the borrower until the loan is paid off.
Wells Fargo Says Focusing on ‘Core’ Businesses
“This transaction is consistent with Wells Fargo’s strategy of focusing on businesses that are core to our consumer and corporate clients,” said Kara McShane, head of Wells Fargo Commercial Real Estate. “…[W]e will continue to serve our clients with a broad suite of lending, advisory, and capital markets capabilities while leveraging our franchise to grow our corporate and investment bank.”
Wells Fargo shares edged lower to $56.22 as of 1:40 p.m. ET Tuesday. They are up roughly 15% this year.