{"id":1004725972,"date":"2024-08-21T01:30:48","date_gmt":"2024-08-21T09:30:48","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004725972"},"modified":"2024-08-21T04:22:55","modified_gmt":"2024-08-21T12:22:55","slug":"wells-fargo-sells-most-of-its-cre-loan-servicing-business","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/wells-fargo-sells-most-of-its-cre-loan-servicing-business\/","title":{"rendered":"Wells Fargo Sells Most of Its Commercial Mortgage Servicing Business"},"content":{"rendered":"\n

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\n
\"Wells<\/a>
Wells Fargo & Co. has approximately $1.9 trillion in assets. Image courtesy of Wells Fargo<\/em><\/figcaption><\/figure><\/div>\n\n\n

Trimont, a global commercial real estate loan services provider, has agreed to buy Wells Fargo\u2019s non-agency third-party Commercial Mortgage Servicing business. The deal, backed by V\u00e4rde Partners, will make Trimont the largest loan servicer in the U.S. commercial real estate industry.<\/p>\n\n\n\n

Once the transaction closes, likely in early 2025, Trimont will manage a combined $640 billion of loans in the U.S., or about 11 percent of the nation’s CRE lending market. That total rises to more than $715 billion when international commercial real estate loans<\/a> are included.<\/p>\n\n\n\n

Funding for the transaction will be provided by V\u00e4rde Partners. The global alternative investment firm has owned Trimont through certain funds since 2015.<\/p>\n\n\n\n

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READ ALSO:<\/strong> Have Cap Rates Peaked?<\/a><\/p>\n\n\n\n

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Trimont primarily serves non-bank and alternative lenders, while CMS specializes in securitized debt products including CMBS conduit<\/a>, SASB, CLOs and Freddie Mac-K series. The acquisition will enable the firm to offer comprehensive servicing across all non-bank CRE lending structures, including master servicing.<\/p>\n\n\n\n

CEO Bill Sexton noted in prepared remarks the businesses are highly complementary and combining them will allow Trimont to provide comprehensive service offerings to the increasingly sophisticated CRE lending market.<\/p>\n\n\n\n

Upon closing, Trimont will be the single largest loan servicer in the CRE industry, moving up from 10th place last year, according to the Mortgage Bankers Association. When MBA released<\/a> the 2023 year-end ranking of commercial and multifamily mortgage servicers\u2019 volumes in February, Wells Fargo topped the list with $669 billion in master and primary servicing, while Trimont had only $144.7 billion in servicing. <\/p>\n\n\n\n

PNC Real Estate\/Midland Loan Services followed Wells Fargo with $646 billion, KeyBank National Association ($465 billion), CBRE Loan Services ($410 billion) and Berkadia Commercial Mortgage LLC ($405 billion). MBA noted Wells Fargo serviced 39,759 loans in 2023 while Trimont serviced 2,722 last year.<\/p>\n\n\n\n

Wells Fargo strategy<\/h2>\n\n\n\n

Wells Fargo, the fourth-largest U.S. bank, will continue servicing Fannie Mae and Freddie Mac loans and loans held on its balance sheet.<\/p>\n\n\n\n

Kara McShane, executive vice president & head of Wells Fargo Commercial Real Estate, said in a prepared statement the sale of the CMS business is consistent with the bank\u2019s strategy of focusing on businesses that are core to its consumer and corporate clients. <\/p>\n\n\n\n

McShane stated the bank remains committed to its market-leading CRE business and will continue to provide a broad suite of lending, advisory and capital markets capabilities while leveraging the franchise to grow its corporate and investment bank. Wells Fargo currently has approximately $1.9 billion in assets.<\/p>\n\n\n\n

Bloomberg <\/em>reported the planned sale of the CMS business is another move to reduce some of the bank’s real estate lending operations. Last year, Wells Fargo scaled back its home-lending business as well and The Wall Street Journal<\/em> noted those moves come as the bank tries to grow other aspects of its business, including credit cards.<\/p>\n\n\n\n

Transaction advisors<\/h2>\n\n\n\n

J.P. Morgan Securities LLC served as financial advisor, with Goldman Sachs & Co. LLC providing additional advisory services. Kirkland & Ellis, Cadwalader, Wickersham & Taft LLP and Trilegal served as legal advisors to Trimont and V\u00e4rde Partners.<\/p>\n\n\n\n

Wells Fargo Securities LLC served as exclusive financial advisor to Wells Fargo, while Wachtell, Lipton, Rosen and Katz provided legal advisory services.<\/p>\n","protected":false},"excerpt":{"rendered":"

This deal would make the buyer the largest CRE loan servicer in the nation.<\/p>\n","protected":false},"author":1068,"featured_media":1004725976,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825,21783,23891,21742],"tags":[33631,34040,47813,45224,33277],"class_list":["post-1004725972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-investment","category-national","category-latest","tag-j-p-morgan-securities","tag-mortgage-bankers-association","tag-trimont-real-estate-advisors","tag-varde-partners","tag-wells-fargo"],"acf":[],"yoast_head":"\nWells Fargo Sells Most of Its Commercial Mortgage Servicing Business - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Trimont has agreed to buy Wells Fargo\u2019s non-agency third-party Commercial Mortgage Servicing business in a deal backed by V\u00e4rde Partners.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/wells-fargo-sells-most-of-its-cre-loan-servicing-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wells Fargo Sells Most of Its Commercial Mortgage Servicing Business\" \/>\n<meta property=\"og:description\" content=\"Trimont has agreed to buy Wells Fargo\u2019s non-agency third-party Commercial Mortgage Servicing business in a deal backed by V\u00e4rde Partners.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/wells-fargo-sells-most-of-its-cre-loan-servicing-business\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-21T09:30:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-21T12:22:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/08\/Wells-Fargo-building-exterior-edited.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"607\" \/>\n\t<meta property=\"og:image:height\" content=\"455\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/wells-fargo-sells-most-of-its-cre-loan-servicing-business\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wells-fargo-sells-most-of-its-cre-loan-servicing-business\/\",\"name\":\"Wells Fargo Sells Most of Its Commercial Mortgage Servicing Business - 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