Wells Fargo Home Mortgage Will Reclaim Nation's Top Servicer Title, First To Surpass $400 billion
DES MOINES — September 12, 2000
Wells Fargo Home Mortgage is poised to reclaim its title as the nation's top mortgage servicer.
Wells Fargo Home Mortgage was the nation's largest mortgage servicer until 1997, the year it became the first mortgage company in history to surpass $200 billion with its portfolio. Through an aggressive acquisition strategy, strong mortgage originations and customer retention, Wells Fargo Home Mortgage will be the first to surpass the $400 billion level.
"We believe Wells Fargo Home Mortgage leads the industry in providing the highest levels of customer service and operating with the lowest cost," said Pete Wissinger, president and chief operating officer, Wells Fargo Home Mortgage. "We are very purposefully applying this core capability to a larger servicing portfolio that has more than doubled in just three years."
"Our scale represents a huge opportunity for our team members, shareholders and, most importantly, our customers who benefit from the industry's broadest product and service offering and our commitment to the exceptional customer service," Wissinger added.
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. Servicing portfolio volume from several acquisitions announced in 2000 are included in the current portfolio, including:
- Acquisition of the $2.7 billion servicing portfolio of Northland Mortgage as a part of Wells Fargo & Company's acquisition of National Bancorp of Alaska, announced January 12, 2000;
- Acquisition of the $1.9 billion servicing portfolio and production channels of First Commerce Mortgage as a part of Wells Fargo & Company's acquisition of Nebraska-based First Commerce Bankshares, Inc., announced Feb. 2, 2000;
- Acquisition of a $7.5 billion servicing portfolio from Fleet Mortgage Company, announced July 5, 2000;
When combining Wells Fargo Home Mortgage's August month end servicing portfolio volume with previously announced, but not yet closed, acquisitions, the company's servicing portfolio will reach $438 billion, representing more than 4 million customers. Previously announced acquisitions include:
- Acquisition of the $17 billion servicing portfolio and production channels of CrossLand Mortgage as a part of Wells Fargo & Company's acquisition of First Security Corporation, announced April 10, 2000;
- Acquisition of $911 million servicing portfolio and production channels of Brenton Mortgages, Inc., as a part of Wells Fargo & Company's acquisition of Iowa-based Brenton Banks, announced July 7, 2000;
- Acquisition of $35.7 billion servicing portfolio of First Union Mortgage Corp., announced September 5, 2000;
- Agreement to subservice GE Capital Mortgage Services' $78.6 billion mortgage servicing portfolio, and acquire selected assets, as well as the mortgage origination business, announced September 12.
"The balance we have continued to build between our origination and servicing businesses offers Wells Fargo Home Mortgage important opportunities," said Mike Heid, executive vice president, loan servicing, Wells Fargo Home Mortgage. "A balanced presence in both businesses takes advantage of their counter-cyclical nature and reduces the likelihood of earnings volatility due to changes in interest rates.
"Most importantly, this same balance brings added value to our customers," added Heid. "We are able to offer more personalized solutions to our customers' home financing needs and are better positioned to earn their home finance business through changes in life events or interest rate cycles. The service we provide to our customer is the single most important factor in creating this true cycle of customer retention."
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.