WaMu Sale Should Cement Wells Fargo’s Hold On the Ginnie Mae Servicing Market
July 27, 2006
Wells Fargo’s stranglehold on the Ginnie Mae servicing market is about to get tighter thanks to the purchase of a massive portfolio from its nearest competitor, Washington Mutual. WaMu said that its decision to sell $140 billion in servicing rights, including all its FHA and VA servicing as well as its Milwaukee servicing platform, reflects a strategic decision to exit the FHA lending business. … [One data table included]