Washington Mutual is selling all of its government mortgage servicing and part of its conforming, fixed-rate loan portfolio to Wells Fargo & Co. — about $140 billion in debt, all told, held by 1.3 million customers.

To smooth the transition, most of Washington Mutual’s loan servicing and support staff in Milwaukee will become Wells Fargo employees late this year and early next year, the companies said in a press release.

Terms of the deal were not disclosed. But Washington Mutual said the move was part of a strategy to focus the bank’s home loan business on higher-margin products and reduce mortgage-servicing rights as a percentage of capital. Washington Mutual last week announced plans to farm out residential appraisals to two outside appraisal management companies as part of a move to cut 900 jobs.

After the sale, Washington Mutual’s total mortgage-servicing portfolio will stand at about $692 billion in outstanding principle held by 4 million customers.

Wells Fargo, which says its mortgage servicing portfolio has grown at a compound annual rate of 25 percent a year since 1995, will be servicing $1.25 trillion in mortgage debts held by 7.5 million customers — a 13 percent increase from current levels — when the deal closes.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription