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Wells Fargo has agreed to sell most of its commercial mortgage servicing portfolio to Atlanta-based Trimont. The deal is expected to make Trimont the largest servicer of multifamily and commercial loans in the U.S.
The transaction includes only Wells Fargo’s non-agency, third-party commercial mortgage servicing (CMS) business. The bank will keep its agency and government-sponsored enterprise (GSE) loans, as well as those held on its balance sheet.
The deal is expected to close in early 2025. The parties did not disclose the financial details.
As a result of the transaction, commercial real estate services provider Trimont expects to manage $640 billion of loans in the U.S., an 11% share of the country’s commercial real estate lending market.
According to a survey by the Mortgage Bankers Association (MBA), Trimont had $133 billion in master and primary commercial/multifamily mortgage servicing volume at the end of 2023. That was good for the No. 10 position among the nation’s largest servicers. Wells Fargo was the market leader with $669 billion in volume.
Värde Partners, a global alternative investment firm that has owned Trimont through certain funds since 2015, provided the funds for the transaction.
Last year, Wells Fargo chose to exit the home lending correspondent channel and reduce its footprint in residential mortgage servicing. The bank seeks to minimize risk in the mortgage business by reducing its size and narrowing its focus.
“This transaction is consistent with Wells Fargo’s strategy of focusing on businesses that are core to our consumer and corporate clients,” Kara McShane, executive vice president and head of Wells Fargo’s commercial real estate division, said in a statement.
According to McShane, commercial real estate clients will continue to be served with lending, advisory and capital markets capabilities.
Trimont CEO Bill Sexton said in a statement that Wells Fargo’s and Trimont’s “businesses are highly complementary.” Trimont primarily serves nonbank and alternative lenders. Meanwhile, Wells Fargo’s CMS business specializes in securitized debt products — including a commercial mortgage-backed securities (CMBS) conduit, collateralized loan obligations (CLOs) and Freddie Mac’s K-series.
After the deal closes, Trimont expects to manage more than $715 billion in U.S. and international commercial mortgages.
Wells Fargo Securities was the bank’s exclusive financial adviser in the transaction. J.P. Morgan Securities and Goldman Sachs & Co. served as advisers for Trimont and Värde Partners.
