Wells Fargo Said to Offer $1.3 Billion in Banks’ Bad Debt

Wells Fargo & Co. is selling about $1.3 billion in troubled mortgage debt on behalf of regional bank clients, said two people with knowledge of the offering.

Wells Fargo is marketing two pools made up of mostly reperforming loans as well as nonperforming loans, said the people, who asked not to be identified because the sale is private. The offering includes a pool of about $630 million in unpaid principal balance, and another of about $700 million, one of the people said.