Wells Fargo to offload most of its commercial mortgage servicing business to Trimont

Wells Fargo (NYSE:WFC) has agreed to sell the non-agency third-party commercial mortgage servicing segment of its commercial mortgage servicing business to Trimont LLC, a commercial real estate loan servicer, it said on Tuesday.

The megabank did not include terms for the deal, which is expected to close in early 2025.

The sale reflects a strategy introduced last year by Wells Fargo (WFC) to reduce home-loan servicing.

“This transaction is consistent with Wells Fargo’s strategy of focusing on businesses that are core to our consumer and corporate clients,” said Kara McShane, executive vice president, and head of Wells Fargo Commercial Real Estate. She noted that the bank remains dedicated to the business.

A company filing earlier this month showed that Wells Fargo (WFC), the U.S.’s fourth-largest bank, serviced and sub-serviced $543B in commercial mortgages for others as of June 30, 2024. That includes third-party agency and government-sponsored loans it will keep servicing.

(WFC) edged down 0.4% minutes after the opening bell.