IBM Finalizes Wilshire Acquisition
IBM (IBM) finalized the acquisition of the core operating assets of Wilshire Credit Corp. from Bank of America (BAC) today. The initial agreement was announced in October 2009. REO Insider broke the news in January that IBM would close the Wilshire REO department, according to a letter sent to REO brokers. Over 12 years, brokers working with Wilshire closed more than 50,000 REO properties with a combined sales price of $6bn. Bank of America will retain the Wilshire servicing rights and related assets, according to IBM. The Wilshire properties service transferred today and will be managed by Denver-based Integrated Asset Services. Brokers with active REO listings will receive a two-week notice prior to the transfer, which will inform them when to submit final bills. REO Insider also reported that Wilshire would receive a substantial servicing portfolio from the mortgage giant Fannie Mae (FNM), according to industry sources. Wilshire currently receives a $323m potential cap incentive through the Home Affordable Modification Program (HAMP), according to the Troubled Asset Relief Program (TARP) transaction report. Under HAMP, the US Treasury Department gives capped incentives to servicers for the modification of loans on the verge of foreclosure. On Dec. 30, 2009, the Treasury adjusted the Wilshire cap to $323m from $203m, according to the report. The Wilshire operating platform is set to become part of IBM’s Lender Business Process Services unit, according to a release from IBM. Write to Jon Prior.