Wells Fargo Pays $51B for MSRs Acquisition

Wells Fargo Pays $51B for MSRs Acquisition

September 8, 2017
Wells Fargo, the largest mortgage lender and third largest bank in the nation, is planning to cut between five and 10 percent of its workforce over the next three years
Wells Fargo & Co. has acquired approximately $51 billion in mortgage servicing rights (MSRs) from New York-based Seneca Mortgage Investment. The terms of the transaction were not disclosed.
According to Wells Fargo, the loans underlying the MSRs are conventional/conforming loans guaranteed by Fannie Mae or Freddie Mac. After the announcement of the acquisition was made, Seneca Mortgage Investment posted a notice on its Web site stating it was no longer actively servicing mortgages.
“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.”