Wells Exits Home Lending, Sells to GM Unit

Wells Fargo & Co. agreed to sell $28.1 billion of home mortgages and other mortgage-related assets to General Motors Corp.’s mortgage lending unit, exiting the business of first home mortgages. San Francisco-based Wells Fargo, the 10th-largest U.S. bank, agreed to sell the loan portfolio, a loan servicing facility in National City, and the right to process--but not own--an additional $6.4 billion of home loans. Terms of the transaction weren’t disclosed. The sale to Horsham, Pa.-based GMAC Mortgage Corp., which manages $110 billion, would close in June, the companies said. Wells originates home equity loans and offers its customers first mortgages through an alliance with PHH Mortgage Services Corp. Wells services home equity loans, but with the completion of the agreement with GMAC would no longer service first mortgages. Wells shares rose 38 cents to close at $329.50 on the New York Stock Exchange.