Wells Fargo Home Mortgage Agrees To Subservice GE Capital Mortgage Servicing Portfolio, Purchase Mortgage Origination Business
DES MOINES — September 12, 2000
Wells Fargo Home Mortgage, Inc., a subsidiary of Wells Fargo & Company (NYSE: WFC), today signed a definitive agreement to subservice GE Capital Mortgage Services' $78.6 billion mortgage servicing portfolio, representing nearly 750,000 customers. In addition, Wells Fargo Home Mortgage will acquire the San Bernadino servicing facility and selected assets, as well as the mortgage origination business and the related mortgage pipeline, from GE Capital Mortgage Services.
GE Capital Mortgage Services will retain a financial interest in the servicing portfolio, and will honor existing relationships with correspondents and brokers as it assists in an orderly transition.
Terms of the agreement were not disclosed. The deal is expected to close in the third quarter of 2000. The transaction is subject to investor and regulatory approval.
"This transaction provides an excellent opportunity for both companies to gain greater alignment with our respective core business goals," said Pete Wissinger, president and chief operating officer of Wells Fargo Home Mortgage. "We will leverage our skill and scale in managing the industry's largest servicing portfolio and add strength to our production channels through this agreement, strengthening the balance of our business model."
"Servicing our new customers under the Wells Fargo Home Mortgage name, we will work very hard to earn their trust by providing exceptional customer service and offering personalized solutions to their home financing needs," Wissinger added.
"The consumers presently served by GE Mortgage Services will transfer to Wells Fargo, one of the largest mortgage banks in the United States, an unquestioned leader in the industry, and a business solidly aligned with the mortgage servicing market," said Tom Mann, GE Mortgage Insurance chief executive officer. "At the same time, this transaction will allow GE to optimize its place in the industry by sharpening its focus on mortgage insurance and related businesses. Along with our e-Business initiative, it's a step that will allow us to deliver even more value to homebuyers, our customers and our shareholders."
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. Wells Fargo Home Mortgage will manage the nation's largest mortgage servicing portfolio upon completion of the deal with GE Capital Mortgage. In addition, Wells Fargo Home Mortgage will become the industry's first servicer to exceed the $400 billion servicing milestone upon completion of this and other acquisition already announced by Wells Fargo Home Mortgage in 2000.
GE Capital Mortgage Corporation is a subsidiary of GE Capital, a global, diversified financial services company with 28 specialized businesses and assets of more than $300 billion. A wholly owned subsidiary of General Electric Company, GE Capital, based in Stamford, CT, provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer services, such as car leasing and credit cards, to businesses and individuals around the world. GE is a diversified manufacturing, technology and services company with operations worldwide.
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 stores and Wells Fargo bank locations 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.