Wells Fargo's (WFC) mortgage-bond trustee division is planning to hand its duties to investigate soured home loans and pursue lender repurchases to other companies.
The move is meant to address the appearance of conflicts of interests, Bloomberg said.
The country’s largest home lender, which serves as trustee on about 700 mortgage-bond transactions, expects to take the step for at least 20 transactions in the next few months, said Brian Bartlett, head of corporate trust services at the San Francisco- based bank.
Wells Fargo is seeking to avoid suggestions its trustee work can be influenced by unrelated repurchase demands against its own home-lending unit. Read more at Bloomberg.
— Kerry Curry