AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
Wells Again King of the Hill.(Wells Fargo)
SEATTLE -- In a deal for the record books, Washington Mutual agreed last month to sell its entire government servicing portfolio and part of its conforming portfolio- $140 billion in receivables - to competitor Wells Fargo.
The portfolio was not sent out for bid, and was negotiated one-on-one between the two mortgage banking giants. Lehman Brothers advised WaMu.
The sale also makes Wells Fargo Home Mortgage the nation's largest residential servicer again with $1.273 trillion in receivables to $1.196 trillion for Countrywide Home Loans, Calabasas, Calif. (The ranking is based on June 30 figures with WaMu's portfolio added to WFHM's.) One executive of a large mortgage banking franchise, requesting anonymity, said the deal surprised him. "I don't get it," he said. "WaMu seems to be changing strategies constantly."
A few years back, WaMu was an aggressive buyer of residential servicing rights and mortgage franchises, gobbling up some of the biggest names in the business. It recently closed it traditional correspondent division.
According to analysts, the sale of Wells is part of a continuing process of diversifying away from mortgages while reducing its hedging risks.
WaMu values the $140 billion in servicing rights at $2.6 billion, but when all is said and done, the thrift will book a $157 million pretax loss on the sale.
WaMu chairman Kerry Killinger said in a conference call that he expects to more than offset the loss through the planned sale of its mutual fund business, which the company is currently shopping around.
- Wells Fargo, Wachovia merge; JPMorgan Chase acquires WaMu.(Briefing)(mergers...
- Magazine article from: Mortgage Banking November 1, 2008 700+ words
...people and businesses at Wells Fargo, and we are extremely...he said. The combined Wells Fargo/Wachovia organization...according to Howard Atkins, Wells Fargo's chief financial officer...Washington Mutual Inc. (WaMu). New York-based JPMorgan...
- Freddie Mac to Buy Conforming Jumbo Mortgages in High Cost Markets From Wells...
- Press release article from: PR Newswire April 17, 2008 700+ words
...its portfolio, Wells Fargo, Chase, CitiMortgage and WaMu will have instant...By working with Wells Fargo, Chase, CitiMortgage, WaMu and other national...I want to thank Wells Fargo, Chase, CitiMortgage and WaMu for working with...
- Wells Fargo Passes WaMu in Servicing Ranks.
- Magazine article from: National Mortgage News Muolo, Paul August 9, 2004 700+ words
...by National Mortgage News, Wells Fargo Home Mortgage, Des Moines...s largest servicer with WaMu slipping to third. The last time Wells ranked first - and WaMu didn't - was in early 2001, right before WaMu went on a huge buying spree...
- WAMU, WELLS FARGO REPORT SUCCESS IN CREDIT CARD CROSS SELLING.
- Newspaper article from: Cardline November 30, 2007 700+ words
...said in a presentation at the conference. Corcoran said WaMu's push to cross sell products related to free checking accounts...Another speaker, Mark Oman, senior executive vice president of Wells Fargo & Co., said Wells continues to grow credit card balances...
- Refinancing Boosts Earnings at Wells Fargo and WaMu.
- Magazine article from: National Mortgage News April 23, 2001 700+ words
Wells Fargo & Co. reported a net income of...referring more of our banking customers to Wells Fargo Home Mortgage." The executive also stressed that since its reorganization as a Wells Fargo Bank subsidiary, WFHM has taken advantage...
- Wells Up; WaMu Stumbles.
- Magazine article from: National Mortgage News Cornwell, Ted October 22, 2007 700+ words
...Technically, Wells Fargo turned in the best...housing sector. WaMu's home loans group...quarter. But even at Wells Fargo, the nature of the...Street expectations. Wells Fargo has a "net unrealized...analysts had expected. WaMu increased its loss...
- Wells, WaMu Income Off.
- News wire article from: Mortgage Line Cornwell, Ted April 28, 2006 700+ words
...past 12 months. Like Wells Fargo, WaMu has implemented SFAS...financial assets. Moreover, WaMu continues to explore...other strategies. Unlike Wells Fargo, home loan origination...in the first quarter. WaMu produced $44.2 billion...
- Hedging Concerns Hit Wells, WaMu: It wasn't lower loan volume that was the main...
- Magazine article from: Origination News Cornwell, Ted May 1, 2006 700+ words
...past 12 months. Like Wells Fargo, WaMu has implemented SFAS...financial assets. Moreover, WaMu continues to explore...other strategies. Unlike Wells Fargo, home loan origination...in the first quarter. WaMu produced $44.2 billion...
Source: HighBeam Research, Wells Again King of the Hill.(Wells Fargo)