It is unclear what would become of the rest of C-Bass [sic], a New York joint venture of MGIC Investment Corp. and Radian Group Inc. that invests in subprime home loans and lower-rated mortgage backed-securities, after the sale.Subscribers can read the full story. Both MGIC and Radian have said they may write off as much as a combined $1 billion of their investment in the company, while C-BASS disclosed at the end of July that it was facing "unprecedented" margin calls and could not meet all outstanding claims.
Update: Litton's Price Pegged at $500 Million
Following up on a story from earlier this week, American Banker reports that an inside source has estimated the rumored purchase of Litton Loan Servicing by Goldman Sachs at $500 million. Litton, currently affiliated with Credit-Based Asset Servicing and Securitization (C-BASS to most in the industry), is a specialist in servicing non-performing and scratch-and-dent loans. If the sale takes place, it's looking like the future of C-BASS may be clouded: