Goldman Sachs may soon sell mortgage servicing arm Litton Loan Servicing, the Financial Times reports. According to the report, the financial giant has been approached by at least one buyer, but negotiations fell apart because the parties were too far away on price.
The Financial Times cites ‘people familiar with the situation’ in explaining that Litton is no longer viewed as essential to its operations. Goldman Sachs purchased the shop from Credit-Based Asset Servicing and Securitization LLC in December 2007.
‘Given the stress in the residential mortgage market, a premium is being placed on quality workout-servicing capabilities, for which Litton is very well known,’ a Goldman Sachs spokesperson said at the time.
In October, Litton joined the growing ranks of servicers that voluntarily suspended foreclosures in the wake of the robo-signing reports so that it could review its procedures.
SOURCE: Financial Times