HomeServices Lending announced plans to end an existing joint venture with Wells Fargo and become a wholly-owned subsidiary ofHomeServices of America, a Berkshire Hathaway affiliate.
This announcement arrived just as Wells Fargo (WFC) announced plans to withdraw from eight joint ventures in the mortgage lending space, ending its joint-venture agreement with HomeServices Lending.
"Wells Fargo has been a great partner for many years, and we look forward to working together in the future, but we felt that a wholly-owned model better fits our long-term strategy," said Todd Johnson, president of HomeServices Lending.
The change in ownership structure will not impact HomeServices Lending’s current operations or organization, the firm added.
"Our mission is to provide an exceptional customer experience throughout the home transaction process," said Ron Peltier, chairman and CEO of HomeServices of America.
"Owning and operating the lending portion of our business provides us with tremendous flexibility as we continue to build HomeServices into a global organization," he added. The transition is currently underway and is expected to be finalized sometime next year.
