Defeasance Services

Simplifying defeasance

Learn how defeasing your loan with Wells Fargo can be a seamless process.

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Wells Fargo can help you with the complex process of defeasing a loan. Our defeasance clients include individual borrowers, institutional investors, financial institutions, investment banks, and third-party investment groups.

The Wells Fargo advantage

  • Experienced team. We have been conducting defeasance transactions since 2004. In the last 10+ years, we have closed more than 6,000 defeasance transactions totaling nearly $70 billion. Of those transactions we have been the defeasance consultant on over half.
  • Simplified process. By acting in multiple defeasance roles on your behalf, we eliminate the complexity of having additional parties involved and therefore provide a comprehensive approach.

Defeasance consultant, successor borrower, securities intermediary, and servicer roles

  • Lower costs. We offer free quotes based on real time pricing and our strong relationships with third-party vendors allow us to negotiate on your behalf and pass the savings along to you. If we service the loan and the loan documents allow, we do not require borrowers to purchase securities through the maturity date, but through the open period. This benefit means huge savings for the borrower.

Defeasance is the process by which the real estate collateral securing a mortgage loan is replaced by government securities in order to release the real estate collateral, while keeping the payment stream for the mortgage loan intact.

The release of the original collateral allows the borrower to sell or refinance the real estate.

In the news

Wells Fargo sets defeasance record
"The banking giant, which ranks as the nation's largest commercial loan servicer, defeased $11.8 billion in securitized debt in 2014, equal to the amount of total defeasance throughout the U.S. the previous year, a Wells Fargo executive told Mortgage Observer ."

Commercial Observer
March 4, 2015

Upcoming events

Visit the Wells Fargo booth at these upcoming tradeshows:

International Council of Shopping Centers/RECon

May 22-25, 2016

CRE Finance Council

June 13-15, 2016

California Mortgage Bankers Association

September 7-9, 2016