Commercial Federal Corporation announced Thursday that it is selling its $10 billion mortgage servicing business to Wells Fargo in a move expected to affect 135 employees.

In a statement released Thursday morning the company said Commercial Federal will continue to offer a full line of mortgage loan products and services to consumers in its seven-state market area of Nebraska, Colorado, Iowa, Missouri, Kansas, Oklahoma and Arizona.

"The strategic decision to exit third party mortgage servicing will further focus Commercial Federal's business model on growing our very successful core banking franchise," said William A. Fitzgerald, chairman and chief executive officer.

Commercial Federal estimates that approximately 135 positions will be affected by the sale, and the Company said it is taking a number of actions to minimize the impact of job loss.

"The size of our mortgage servicing for others portfolio created too much variability in our earnings and that detracted from the performance of the rest of the bank," said Fred Kulikowski, CFB president and chief operating officer. "Focusing our attention on retail and commercial banking - the core businesses that will drive the most profitable long-term growth for us - will enhance long-term value for our shareholders by improving margins, and therefore profitability."