Wells Fargo selling its non-agency third-party servicing segment of its CRE mortgaging service business to Trimont has been a big deal. In the long run, it seems like a smart move for both companies and probably for the industry as well.

After the expected closing in 2025, Trimon says it expects to manage more than $715 billion in U.S. and international CRE loans. Värde Partners, an alternative investment firm that has owned Trimont through various funds, will provide funding for the transaction. Bloomberg reported that Trimont will pick up servicing for about $475 billion of loans.

While the move on Well Fargo's part might seem like a pullback from commercial lending, CNN wrote, "Wells Fargo's deal to sell off its non-agency third-party Commercial Mortgage Servicing business 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."