Wells Fargo's (WFC) home-loan unit has sold a portfolio of reverse-mortgage servicing rights to Walter Investment Management (WAC).
The portfolio includes more than 76,000 loans, all owned by Fannie Mae, with an unpaid principal balance of $12.2 billion, the companies said Tuesday. The terms of the sale were not disclosed. The rights are expected to transfer from Wells Fargo Home Mortgage to Reverse Mortgage Solutions, a subsidiary of the Tampa, Fla., asset manager, on June 31.
Wells Fargo ceased originating reverse mortgages in June 2011. The sale is not expected to have a material impact on earnings, and Wells Fargo will continuing servicing the non-Fannie Mae reverse mortgages in its portfolio, a company spokeswoman said.
Wells Fargo is the nation's second-largest mortgage servicer, with a portfolio totaling $1.9 trillion. The bank
Walter has been rapidly expanding its mortgage-servicing business. It
"We expect that the acquisition …will be an attractive addition to our reverse mortgage servicing portfolio and solidify our position as a leader in the reverse mortgage sector," said Walter Investment Chairman and Chief Executive Mark O'Brien in the news release.