Goldman Sachs Group Inc. may buy Litton Loan Servicing LP, the Houston-based servicer of U.S. subprime mortgages, said people with knowledge of the matter ... Buying a servicing business would allow the owners "to go out and buy distressed loan portfolios, or work out what they already own," [Terry] Couto [partner at Newbold Advisors, a mortgage-consulting firm] said ... The deal may close within the next two months, according to the people, who declined to be identified because the talks are confidential.Goldman seems like a much better fit.
Update: Goldman Sachs Takes Lead in Potential Deal for Litton Loan Servicing
Bloomberg is reporting tonight that Fannie Mae is no longer pursuing Litton Loan Servicing, the special servicing arm associated with troubled scratch-and-dent operation C-BASS. Instead, it now appears that Goldman Sachs will be the latest Wall Street investment bank to own its own servicing shop: