Wells Fargo Buys Servicing Rights as Seneca's Mortgage Bet Ends
- Seneca said to exit business with $51 billion rights sale
- Blackstone’s GSO Capital Partners and others started Seneca
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Wells Fargo & Co., the largest U.S. home lender, bought about $51 billion in servicing rights from an investment firm connected to Blackstone Group LP’s credit arm in a deal that depletes the investor’s mortgage portfolio.
Wells Fargo bought the rights from Seneca Mortgage Investments, with the underlying loans all guaranteed by Fannie Mae or Freddie Mac, the San Francisco-based bank said Thursday in a statement that didn’t include terms. The servicing rights will be reflected in Wells Fargo’s third-quarter results.