(Bloomberg)—Wells Fargo & Co., the largest U.S. home lender, bought about $51 billion in servicing rights from Seneca Mortgage Investment.
The underlying mortgages are all guaranteed by Fannie Mae or Freddie Mac, San Francisco-based Wells Fargo said Thursday in a statement that didn’t include terms. The serving rights will be reflected in third-quarter results.
“Mortgage servicing is an attractive, core business for Wells Fargo, and this transaction provides an opportunity for us to strategically enhance our servicing portfolio,” Franklin Codel, head of consumer lending, said in the statement.
Wells Fargo is the largest U.S. mortgage servicer, with a portfolio of about $1.5 trillion as of June 30, according to the statement.
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