Fremont Unloads Portion of Servicing Operation
Former subprime lending giant Fremont Investment & Loan said Monday that it had sold its Irving, Texas loan servicing facility to an as-of-yet unnamed buyer; HW was attempting to track down the purchaser when this post was originally published. The sale includes both the actual servicing center as well as the employees that work there, according to a press statement by the company. Fremont said that employees at the affected facility are expected to be offered employment by the purchaser, and that both parties would work to ensure a "smooth transition." Fremont will maintain its primary servicing operations in Ontario, California, it said. The sale does not include any transfer of existing mortgage servicing rights, and is expected to close in the first quarter of 2008. Fremont expects to realize $12 million in annual savings by reducing its servicing footprint, according to company officials. Fremont exited the subprime mortgage business in March 2007 after receiving a cease-and-desist order from the FDIC. Disclosure: When this post was published, the author held no positions in FMT.