As part of the closing process, Bank of America will retain Wilshire mortgage servicing rights and related assets, IBM says. Wilshire's operating assets will become part of IBM's Lender Business Process Services Inc. business unit, the companies announced in October.
IBM jumped into the servicing space last March with its introduction of modification fulfillment services, though the company has long viewed mortgage business process outsourcing as a strategic growth area, a spokesperson says. Previous investments include Palisades Technology Partners, FileNet, Cognos and ILOG.
"The acquisition of Wilshire represents a continuation of IBM's strategic focus on the mortgage services industry and enhances IBM's ability to offer a range of solutions that span the lending value chain," an IBM spokesperson told MortgageOrb.com in an e-mail.
"Some of the attributes that made the assets of Wilshire attractive to IBM included its high-touch specialty servicing for mortgages – specifically its capabilities for servicing loans of delinquent and distressed borrowers, its experience with distressed assets, the strength of its management team, its strong analytics capabilities, its well-run operations and its strong servicer ratings," the spokesperson added.