U.S. fourth-largest bank Wells Fargo & Co. may consider selling mortgage servicing rights without facing any pressure on capital, bank's chief financial officer Tim Sloan said in a statement during an investor conference.
The bank has been delighted to know about the developing market for the buying and selling of collection rights for mortgage loans, Sloan stated. These assets have been sold by a number of large banks because of the fact that they are receiving treatment under new international rules for capital.
Sloan explains that mortgage service rights value may rise once there would be an increase in interest rates, resulting in a capital pressure.
Nevertheless, Wells Fargo is confident that its capital will remain adequate even such dilemma occurs as it continues to see good earnings, Sloan insisted.
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