Wells Fargo & Co. says it has acquired approximately $51 billion in mortgage servicing rights (MSRs) from Seneca Mortgage Investment.
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.
Wells Fargo says 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.
“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,” says 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.”
Wells Fargo is the nation’s largest residential servicer, with a servicing portfolio that totaled more than $1.5 trillion as of June 30.