Wells Fargo to sell its non-agency third-party Commercial Mortgage Servicing business to Trimont

(Reuters) – Wells Fargo will sell its non-agency third-party Commercial Mortgage Servicing business to global commercial real estate loan services provider Trimont, the companies said on Tuesday.

The move comes as the banking sector in the United States faces increasing pressure due to elevated interest rates and challenges in the commercial real estate market.

Founded in 1988, Trimont is a specialized commercial real estate loan services provider which provides services to help lenders manage and grow their commercial real estate loans.

The deal, for which no value was disclosed, is expected to close in early 2025, pending certain conditions, and will result in Trimont managing over $715 billion in U.S. and international commercial real estate loans.

The “strategically important transaction” will position Trimont to be a key partner to real estate capital providers, said Jim Dunbar, Chair of Trimont and Partner at Värde Partners.

Commercial real estate markets, particularly in the United States, have suffered a sharp fall in valuations since 2021 after office vacancy rates jumped in the wake of the pandemic, with analysts predicting further challenges for lenders and property owners in the near future.

Funding for the transaction will be provided by Värde Partners, an alternative investment firm, which acquired and has owned Trimont through certain funds since 2015.

J.P. Morgan Securities served as a financial advisor with Goldman Sachs, providing additional advisory services.