Wells Fargo Home Mortgage Purchases $35.7 Billion Servicing Portfolio from First Union Mortgage
DES MOINES — September 6, 2000
Wells Fargo Home Mortgage, Inc., a subsidiary of Wells Fargo & Company (NYSE: WFC), today announced it has acquired the servicing rights to a $35.7 billion portion of the First Union Mortgage Corporation servicing portfolio, representing more than 437,000 customers. Terms of the agreement were not disclosed.
Wells Fargo Home Mortgage and First Union Mortgage Corporation announced a letter of intent on June 26, for the possible acquisition of First Union's servicing portfolio and Raleigh, North Carolina, servicing center. The companies have agreed to change the structure of the transaction to a purchase of servicing rights. The Raleigh servicing center will remain with First Union Mortgage Corporation and will be restructured as part of First Union's announced plans to exit the mortgage servicing business.
As of August 31, Wells Fargo Home Mortgage's servicing portfolio reached a record $305.7 billion, representing more than 2.7 million homeowners nationwide.
Based in Des Moines, Iowa, Wells Fargo Home Mortgage is a subsidiary of Wells Fargo & Company. It is a leading originator and servicer of residential mortgages. With a presence in more than 1,200 mortgage and Wells Fargo bank stores serving all 50 states, Wells Fargo Home Mortgage operates the leading mortgage lending network in the country. Combined, its retail and wholesale lending operations provide funding for approximately one of every 15 homes financed annually in the United States.
First Union (NYSE: FTU), with $258 billion in assets and stockholders' equity of $14 billion at June 30, 2000, is a leading provider of financial services to 15 million retail and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices in 12 East Cost states and Washington, D.C., and full-service brokerage offices in 41 states and international offices worldwide. Online banking products and services can be accessed through www.firstunion.com .