IBM's mortgage servicing subsidiary has signed an agreement with Bank of America to acquire the core operating assets of Wilshire Credit Corp., including the Wilshire mortgage servicing platform, and hire Wilshire's approximately 900 employees. Terms of the transaction were not disclosed.
The acquisition continues IBM's strategic focus on the mortgage services industry. In March, the company announced the launch of a turnkey loan modification solution that includes analytics capabilities, borrower and portfolio analysis tools, and modification fulfillment services.
‘The acquisition of Wilshire's assets further demonstrates IBM's commitment to delivering robust and innovative mortgage solutions during a difficult time for the mortgage industry,’ says Eric Ray, general manager of IBM Global Technology Services' financial service sector. ‘It also reinforces IBM's commitment to leveraging the full capabilities and resources of IBM to partner with our financial services clients in solving their most difficult challenges.’
Wilshire's operating assets will become part of IBM's Lender Business Process Services Inc. business unit, a wholly owned subsidiary of the IBM Corp. Wilshire will work with its clients, IBM and Bank of America to transition its mortgage servicing rights and related assets to Bank of America. The agreement remains subject to customary closing conditions. There are no immediate changes taking place for customers as a result of this announcement.