Wells Fargo has purchased around $51bn in mortgage servicing rights (MSRs) from Seneca Mortgage Investment.
The underlying loans are guaranteed by Fannie Mae or Freddie Mac, the California-based lender said in a statement.
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The bank did not disclose financial terms of the deal, but said that the MSRs will be reflected in its third quarter results. The transfer is expected to happen in the final quarter of 2017.
Commenting on the acquisition, Wells Fargo head of consumer lending Franklin Codel said: “Mortgage servicing is an attractive, core business for Wells Fargo, and this transaction provides an opportunity for us to strategically enhance our servicing portfolio.”
Wells Fargo is the largest servicer of residential mortgage loans and reported a servicing portfolio of over $1.5 trillion at the end of June 2017.
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