Goldman Sachs confirms possible sale of Litton Loan Servicing
Investment bank Goldman Sachs (GS) said Wednesday it is considering a possible sale of Litton Loan Servicing, the mortgage servicing business it acquired in 2007. While rumors have been percolating for some time about a possible sale of the Texas-based mortgage servicer, the investment bank confirmed the rumors this week, saying it is "exploring strategic alternatives for Litton Loan Servicing, including a possible sale." The company did not specify why it is ready to part ways with Litton Loan, but sources say Litton was acquired at a time when Goldman believed it would find opportunities to acquire distressed loan portfolios. The plan was to have Litton service those loans. Those opportunities never materialized, prompting Goldman to consider other options, a source familiar with the matter told HousingWire. Goldman purchased Litton from Credit-Based Asset Servicing and Securitization, or C-BASS, in 2007 for $428 million plus more than $900 million in debt. C-BASS, which purchased and serviced subprime and Alt-A mortgages during the housing bubble, filed for bankruptcy in November. Write to Kerri Panchuk.