Magazine article American Banker

Wells Takes Reverses In-House

Magazine article American Banker

Wells Takes Reverses In-House

Article excerpt

Wells Fargo Home Mortgage has taken back its reverse mortgage servicing portfolio of over 28,000 accounts from the subservicer Wendover Financial Services Inc. and acquired Wendover's reverse mortgage servicing system.

Wendover, which was long one of the most prominent players in reverse mortgages, has shuttered the division that services them and will lay off 50 employees by mid-December. The Wells Fargo & Co. unit was by far its largest client. The 4,500 accounts of Wendover's other six clients have been taken over by CompuLink Corp., which does business as Celink.

In a statement prepared for American Banker, Jerald Banwart, Wells Fargo Home Mortgage's senior vice president of servicing operations, said its move "is strategic for the growth that we anticipate in the reverse mortgage market."

Susan O'Doherty, Wendover's president, said her Greensboro, N.C., company would continue to subservice other mortgages and consumer loans, including private-label credit card receivables and home equity lines of credit.

"We would rather focus on core products and divest" from "a niche product," she said. "Reverse mortgages are a very highly specialized area" of servicing and "we weren't going to invest" further in that market.

Jeffrey Taylor, who founded Wendover in 1986 and later sold it to State Street Corp., joined Wells in 2000 as its vice president of senior products. (State Street, of Boston, eventually sold Wendover to Electronic Data Systems Inc. …

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