01:11 PM EDT, 08/20/2024 (MT Newswires) -- Wells Fargo ( WFC ) announced plans on Tuesday to sell the non-agency third-party servicing segment of its commercial mortgage servicing business to Trimont.

Financial terms of the deal were not disclosed. The transaction is expected to close in early 2025, subject to customary closing conditions.

Wells Fargo ( WFC ) will continue servicing agency and government-sponsored enterprise loans, as well as loans already held on its balance sheet.

"This transaction is consistent with Wells Fargo's ( WFC ) strategy of focusing on businesses that are core to our consumer and corporate clients," Wells Fargo Commercial Real Estate Head Kara McShane said in a statement.

Wells Fargo ( WFC ) in July said that commercial real estate, or CRE, revenue was down 4% year over year at $1.28 billion in the second quarter amid lower loan balances. The company remains focused on growing its corporate and investment bank, McShane said. That broader division advanced revenue by 4% to $4.84 billion last quarter.

The acquisition positions Trimont as the largest loan servicer with a combined $640 billion of loans in the US, equivalent to roughly 11% of the CRE lending market, it said in a separate statement. Once the deal closes, Trimont will manage more than $715 billion in US and international CRE loans.

"Trimont and Wells Fargo's ( WFC ) Commercial Mortgage Servicing are recognized experts in their respective areas of concentration," Trimont Chief Executive Bill Sexton said. "The businesses are highly complementary and combining them allows Trimont to provide a unique and comprehensive service offering to the increasingly sophisticated CRE lending market."

Jim Dunbar, chair of Trimont and partner at Varde Partners, which has owned Trimont through certain funds since 2015, called the acquisition strategically important and accretive to Trimont.

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