Fremont Completes Servicing Sale to Litton
Troubled S&L Fremont Investment & Loan said Tuesday that it had completed the sale of its remaining mortgage servicing rights to Litton Loan Servicing LP, an affiliate of Goldman, Sachs & Co (GS). The sale of the $12.2 billion servicing portfolio was first announced on May 9. Litton has manged to largely stay out of the industry limelight after it was snapped up from the rubble of former scratch-and-dent giant Credit-Based Asset Servicing & Securitization, or C-BASS. The acquisition adds to the servicing platform's already significant size. Fremont, with $8.8 billion in assets, is largely expected to head for bankruptcy once its proposed sale to CapitalSource, Inc. (CSE) in mid-April, covering most of the bank’s assets and deposit liabilities, is completed. The company was the 22nd largest mortgage originator in the nation during 2006, according to statistics compiled by Inside Mortgage Finance, before running aground in 2007. For more information, visit http://www.fremontgeneral.com.