Wells Fargo to Increase Residential Mortgage Purchases from ABA Members
Wells Fargo (WFC) reached an agreement with the American Bankers Association to allow more member banks to sell residential mortgages to Wells Fargo Funding, the correspondent lending subsidiary of the San Francisco-based bank, at preferred prices. Under the new agreement, Wells Fargo Funding will be able to offer eligible ABA member banks “a full range of products and services at advantaged pricing levels,” according to the ABA Business Solutions, a branch within the trade group of bankers. Community Bank Mortgage, a subsidiary of the ABA, and its owner banks have been dealing with Wells Fargo Funding since 2007. "Through our relationship with Community Bank Mortgage LLC, we have built strong relationships with a select group of community bankers by providing them with competitive mortgage products and services. We're thrilled to expand that opportunity by providing mortgage solutions to all eligible ABA members as a Business Solutions preferred investor," said Brian Handal, senior vice president of Wells Fargo Funding. A spokesperson for the American Bankers Association said the deal is something like collective bargaining at a discount. "We're pleased to add Wells Fargo to our Mortgage Solutions offerings. Through our relationship with them as a secondary market investor in Community Bank Mortgage LLC, we know that Wells Fargo is dedicated to serving community banks. Now all eligible ABA member banks can take advantage of the strong Wells Fargo offerings," said Business Solutions president William Kroll. Write to Jon Prior. Disclosure: the author holds no relevant investments.