Saturday, December 04, 2010

Goldman considers sale of Litton Loan Servicing: Report

Goldman Sachs (GS: 161.66 -0.52%) is considering a sale of its mortgage servicing division Litton Loan Servicing, according to a story in the Financial Times Friday.


A spokesman for Goldman said the investment bank did not have an official comment. Litton services more than $9.7 billion in mortgages with a 30-day delinquency rate of 43% as of 2009, according to an outlook from Standard & Poor's earlier in the year.

The rumor of a Litton sale had been bouncing around for a few weeks, a sign that Goldman does not want to grow the business and may want out, a source in the servicing industry told HousingWire.

In October, Goldman admitted there were "process issues" with foreclosures handled by Litton. The company halted 23,000 foreclosures to sort out affidavits that were signed without a review of the documentation, one of several servicers including Bank of America (BAC: 11.659 -0.18%) and JPMorgan Chase (JPM: 39.03 -0.71%), to do so.

http://www.housingwire.com/2010/12/03/goldman-considers-sale-of-litton-loan-servicing-report

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