Wells Fargo announced it purchased approximately $51 billion in mortgage servicing rights from Seneca Mortgage Investment.
The newly acquired loans are made up of conventional/conforming loans guaranteed by Fannie Mae or Freddie Mac.
The mega bank stated the MSRs will be reflected in the company’s third quarter results.
“We look forward to the opportunity to provide excellent service to these new mortgage customers and are committed to making this a smooth transition for them,” said Franklin Codel, head of consumer lending for Wells Fargo.
“Mortgage servicing is an attractive, core business for Wells Fargo, and this transaction provides an opportunity for us to strategically enhance our servicing portfolio,” continued Codel.
Besides being one of the nation’s biggest mortgage lenders, Wells Fargo is also one of the biggest players in servicing residential mortgage loans, with a servicing portfolio that totaled more than $1.5 trillion as of June 30, 2017.
In light of the news, Wells Fargo said that customers should receive letters from their current servicers in advance of the transfer, targeted for the fourth quarter of this year, and will receive detailed welcome information from Wells Fargo when the transfer occurs.