Wells Fargo & Co (WFC) announced today that it has agreed to sell its non-agency third-party servicing segment of its Commercial Mortgage Servicing business to Trimont for an undisclosed amount. This move signifies Wells Fargo’s commitment to streamlining its operations and concentrating on core business areas that directly serve its consumer and corporate clients.
The deal is expected to close in early 2025, subject to customary closing conditions. Following the transaction, Wells Fargo will continue to service Agency/GSE loans and loans held on its balance sheet.
Kara McShane, Executive Vice President and head of Wells Fargo Commercial Real Estate, stated that the transaction aligns with the company’s strategic focus. She emphasized Wells Fargo’s continued dedication to its market-leading Commercial Real Estate business, assuring clients of ongoing access to a comprehensive suite of lending, advisory, and capital markets services.
This acquisition, backed by Värde Partners, will position Trimont as the largest loan servicer in the US, overseeing a portfolio of $640 billion in loans. This represents approximately 11% of the US commercial real estate lending market.
Bill Sexton, CEO of Trimont, highlighted the complementary nature of the two businesses. He stated that the combined entity will offer a unique and comprehensive service offering to the increasingly sophisticated CRE lending market.
Investors can gain exposure to Wells Fargo shares through exchange-traded funds like the First Trust Nasdaq Bank ETF (FTXO) and the Invesco KBW Bank ETF (KBWB).
WFC shares closed at $56.31 on Tuesday, down 0.25% on the day.
