Fremont General Corp., doing business primarily through its wholly owned bank subsidiary, Fremont Investment & Loan (FIL), says that FIL has completed the previously announced sale of its remaining mortgage servicing rights (MSRs) on its $12.2 billion serviced loan portfolio (as of March 31) to Litton Loan Servicing LP, a Delaware limited partnership and an affiliate of Goldman, Sachs & Co., as contemplated by the asset purchase agreement entered into between FIL and Litton on May 7.
The MSRs sold to Litton included all rights to service mortgage loans under servicing agreements, including the rights to receive servicing fees and ancillary income payable to FIL as servicer and the rights and obligations to make any advances required pursuant to any servicing agreement, including obligations to reimburse funds borrowed from any custodial or other accounts under a servicing agreement, as well as certain other rights to reimbursement.
FIL received approval of the Asset Purchase Agreement from the California Department of Financial Institutions and a notice of non-objection of the Federal Deposit Insurance Corp.
Source: Fremont General Corp.
