The FINANCIAL — Wells Fargo & Co. announced on September 7 that it has acquired approximately $51 billion in mortgage servicing rights (MSRs) from Seneca Mortgage Investment.
“We look forward to the opportunity to provide excellent service to these new mortgage customers and are committed to making this a smooth transition for them,” said Franklin Codel, head of consumer lending for Wells Fargo. “Mortgage servicing is an attractive, core business for Wells Fargo, and this transaction provides an opportunity for us to strategically enhance our servicing portfolio.”
The loans underlying the MSRs are conventional/conforming loans guaranteed by Fannie Mae or Freddie Mac. The MSRs will be reflected in the company’s third quarter results. Additional financial details regarding the transaction were not disclosed, according to Wells Fargo.
Customers should receive letters from their current servicers in advance of the transfer, targeted for the fourth quarter of this year, and will receive detailed welcome information from Wells Fargo when the transfer occurs. Wells Fargo is the nation’s largest servicer of residential mortgage loans, with a servicing portfolio that totaled more than $1.5 trillion as of June 30, 2017.