Wells Fargo & Co. has agreed to sell the majority of its commercial mortgage servicing business to Trimont LLC, effectively handing over its position as the largest U.S. commercial and multifamily mortgage servicer. The Atlanta-based Trimont will acquire Wells Fargo’s non-agency third-party commercial mortgage servicing operations, increasing its loan portfolio under management to over $715 billion.
This transaction marks a significant shift in the mortgage servicing industry, as the banking sector continues to transfer these operations to nonbank entities. According to the Mortgage Bankers Association, Trimont will leap from its current 10th position to become the largest servicer in the U.S. commercial real estate industry.
Trimont’s parent company, Värde Partners, has owned the firm since 2015 and is providing capital to complete the acquisition. The deal, expected to close early next year, will see Trimont taking on about $475 billion of loans, primarily commercial mortgage-backed securities.
For Wells Fargo, the sale is part of a broader strategy to streamline its operations under CEO Charlie Scharf. The bank will continue to service its commercial-property loans and third-party agency and government-sponsored loans but is narrowing its focus on businesses that align more closely with its core consumer and corporate clients.
“This transaction is consistent with our strategy of focusing on businesses that are core to our consumer and corporate clients,” said Kara McShane, head of Wells Fargo’s commercial real estate unit.
Wells Fargo’s stock recovered from an earlier dip following the announcement and has risen nearly 15% this year.
