Michelle ThompsonWells Fargo plans to transfer most of its commercial mortgage servicing operations to Trimont, a global loan services provider. This will position Trimont as the top loan servicer in the US, per Mortgage Bankers Association rankings. This sale occurs amid rising interest rates and difficulties in the US commercial real estate market.
Trimont, founded in 1988, is a commercial real estate loan services firm set to acquire most of Wells Fargo’s commercial mortgage servicing business. Expected to close in early 2025, this deal will make Trimont responsible for over $715 billion in US and international commercial real estate loans. Jim Dunbar, Trimont’s chair, emphasized the deal’s strategic importance amid falling commercial real estate valuations and projected ongoing challenges for the sector.
Last year, Wells Fargo refocused its mortgage strategy to serve existing bank customers and minority homebuyers, while exiting its correspondent business and reducing its mortgage servicing portfolio. Previously a major player in the mortgage sector, Wells Fargo faced significant scandals in 2016, leading to regulatory penalties and a lifetime industry ban for former CEO John Stumpf in 2020, along with a $17.5 million fine for his role in the fake accounts scandal.
