Wells Fargo announced Wednesday that it will purchase Washington Mutual's government mortgage servicing portfolio. Wells Fargo will also purchase a portion of WaMu's conforming, fixed-rate portfolio. The total servicing portfolio after the transaction is complete will be $692 million, and affect 4 million customers with outstanding principal balances. Wells will additionally acquire WaMu's Milwaukee servicing operation. No terms of the deal were disclosed. Washington Mutual has expressed an interest to focus on more profitable products and businesses, and not on the slowing mortgage industry. Mortgage servicing is the business of collecting mortgage payments from borrowers while providing customer service. Wells Fargo has been expanding its mortgage servicing portfolio in the past ten years. It has seen a compound annual growth rate of 25% since 1995. The WaMu acquisition will increase Wells Fargo's mortgage servicing portfolio by 13%. Wells will become the nation's largest servicer, surpassing Countrywide Financial Corp. "We expect this transaction to exceed our required internal rate of return even before factoring in any cross-sell to these new customers," said Howard Atkins, Wells Fargo's chief financial officer. Washington Mutual recently laid off 900 mortgage employees across the country last week. Three-hundred and fifty of these employees were mortgage property appraisers. The company has been working towards slimming down operations and outsourcing to other countrie By.Martin Lukac
Wells Fargo to Buy WaMu's Mortgage Servicing Portfolio
How to Get an American Reverse Mortgage
Are you an older American citizen, who owns a home, but is struggling with finances and needs to free up some cash to meet your current expenses? Then it may be a good idea to apply for an American reverse mortgage. This is specifically designed to help senior citizen homeowners meet all their financial obligations, without the worry of possibly losing their homes in the process. The loan repayments are tax free and there are no minimum income requirements or restrictions on how the money can be used. So how does one go about getting an American reverse mortgage? Retirement can often be a time of insecurity and apprehension for many older Americans, but it need not be. After working and paying taxes for many long years, our senior citizens are entitled to have the opportunity to fulfill their lifetime dreams and goals. However, when financial trouble strikes, as it so often does, this can prevent a retiree from living a quality life on their own terms. This where an American reverse mortgage can help. How to Apply Eligibility for an American reverse mortgage primarily depends upon 2 things: 1. You need to be at least 62 years of age. 2. You need to be a homeowner, who has either fully, or nearly, paid off their mortgage loan. Generated income capability is not a factor and medical tests or background information are not required. The amount you can borrow mainly depends upon your age, the equity in, and value of, your home and the current interest rate. How it works It operates differently from regular mortgages. Instead of you having to make monthly payments to a lender, the lender gives you money each month, and you do not have to make any repayments whilst you are still living in your home. In return, the lender will hold most of the equity in your home. The best thing about it is that no matter how bad your financial situation may be, you will not be forced to give up the house that you worked so hard to get. In the United States today, reverse mortgages are fast becoming a popular way for senior citizens to get help with their finances, and ensure that they can continue to live a life of their own choosing, in retirement, without stress and worry. By.Maureen Hope
