Wells Fargo Is on a Losing Streak, But Still Has Some Trump Cards

Wells Fargo Commercial Mortgage Trust 2012-LC5  Characteristics of the Mortgage Pool
IV.      Characteristics of the Mortgage Pool(1)
A.       Ten Largest Mortgage Loans
 

Mortgage
Loan

Seller

   

Mortgage Loan Name

   

City

   

State

   

Number of
Mortgage Loans /
Mortgaged
Properties

   

Mortgage Loan
Cut-off Date
Balance ($)

WFB   Westside Pavilion   Los Angeles   CA   1 / 1   $155,000,000
WFB   Starwood Capital Hotel
Portfolio
  Various   Various   1 / 20   110,000,000
LCF   Trump Tower Commercial
Condominium
  New York   NY   1 / 1   100,000,000
WFB   100 Church Street   New York   NY   1 / 1   80,000,000
RBS   Cole Retail 12 Portfolio   Various   Various   1 / 12   42,400,000
LCF   Somerset Shoppes   Boca Raton   FL   1 / 1   41,955,891
LCF   Rockville Corporate Center   Rockville   MD   1 / 1   37,800,000
RBS   NTP Portfolio   Various   Various   1 / 3   37,250,000
RBS   Columbia SC Hotel Portfolio   Columbia   SC   1 / 3   31,000,000
RBS   CMC Hotel Portfolio   Various   NC   1 / 3   30,700,000

The Intercept:

The company has until March 31 to re-submit a credible living will. If that doesn’t pass muster, the bank could be forced to sell off business lines, essentially breaking itself up.

But there’s a bright side to all of this for Wells Fargo, and his name is Donald Trump.

By that March 31 deadline, Trump will have been in office for two months. And while the Federal Reserve and the FDIC are independent agencies, Trump will certainly have an incentive to get them to call the dogs off the troubled bank.

You see, Trump owes Wells Fargo a lot of money.

Wells Fargo owns the mortgage on Trump Tower, the retail/residential condo where luminaries have been summoned since the election to kiss the ring of the president-elect. Trump lives and works at Trump Tower, which has an appraised value of $480 million, according to a Wells Fargo securitization document filed with the SEC. Trump is listed as the sponsor of the 10-year mortgage loan on the building, refinanced in 2012 for $100 million. While the borrower is listed as “Trump Tower Commercial LLC,” it’s made clear that “The borrower is indirectly owned 100% by Donald J. Trump.”

The loan is interest-only for 10 years, with a balloon payment due at the maturity date in September 2022. That payment can be rolled over into a new loan, a typical arrangement for a commercial property.

According to a report from the New York Times in August, Trump owes Wells Fargo a total of $410 million, a figure that includes other Trump-owned properties that have debt attached. Wells Fargo is also an underwriter to Ladder Capital, another major lender to Trump.

Trump’s election has been seen as a boon to Wells Fargo, pushing its troubles off the front page. The continued Republican leadership of the Senate could prevent additional hearings into Wells Fargo’s practices, and the company’s main federal antagonist, the Consumer Financial Protection Bureau, is in line to be neutered in a Trump administration; Republicans are planning to put CFPB’s budget under Congressional appropriations control, which could limit their resources.

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