- Trimont will soon acquire Wells Fargo’s non-agency third-party commercial mortgage servicing (CMS) business, significantly boosting its loan servicing portfolio.
- This acquisition will bring roughly $475B in loans to Trimont, positioning the firm as the largest loan servicer in the U.S. once the deal closes in early 2025.
- With the addition of Wells Fargo’s CMS business, Trimont’s U.S. portfolio will reach $640B in loans, representing 11% of the country’s CRE lending market.
Trimont, an Atlanta-based real estate capital management firm, has struck a significant deal to acquire Wells Fargo’s (WFC) non-agency third-party commercial mortgage servicing business, as reported in Commercial Observer.
Strategic Expansion
This acquisition will add approximately $475B in loans to Trimont’s portfolio, a move that positions the company as the largest loan servicer in the country. The transaction, backed by Värde Partners, is expected to close in early 2025.
Once finalized, the deal will bring Trimont’s U.S. loan servicing portfolio to a staggering $640B, capturing about 11% of the country’s CRE lending market. Globally, Trimont’s total portfolio will surpass $715B, further cementing its position as a dominant player in the real estate finance industry.
Trimont’s CEO, Bill Sexton, highlighted the strategic nature of the acquisition, stating that it allows the company to offer a wider array of services to its clients and capitalize on upcoming refinancing cycles.
Employee Transition
As part of the transaction, 710 Wells Fargo employees will transition to Trimont, ensuring continuity in loan servicing operations and expanding Trimont’s internal expertise.
This transition highlights Trimont’s commitment to maintaining high standards of service while scaling its operations to handle the increased volume of loans.
Strategic Shift
Kara McShane, Wells Fargo’s head of CRE, emphasized the bank remains committed to its CRE business, but is narrowing its focus to concentrate on businesses that are central to its consumer and corporate client base.
Despite the sale of its non-agency CMS business, Wells Fargo will continue to service its own CRE loans and remain active in lending, advisory, and capital markets.
Long-Term Implications
The acquisition underscores a broader trend of consolidation within the real estate finance sector, as companies seek scale to remain competitive in an increasingly complex market.
The deal signals a strategic shift for both firms—Trimont bolstering its market position, and Wells Fargo streamlining its focus—indicating how major CRE lenders are adapting to the evolving landscape.
