Fremont General Corp., doing business primarily through its wholly owned bank subsidiary, Fremont Investment & Loan, says it has entered into a definitive agreement to sell the mortgage servicing rights to mortgage loans currently held in certain securitization trusts sponsored by an affiliate of Carrington Capital Management LLC (CCM) to Carrington Mortgage Services LLC (CMS), a wholly owned subsidiary of CCM.
An affiliate of CCM previously acquired these mortgage loans from Fremont prior to the securitizations' completions. The mortgage servicing rights to be sold are associated with underlying mortgage loans with a total remaining principal balance of approximately $1.9 billion, which represents approximately 13% of the total remaining mortgage loan principal balance currently serviced.
The transaction is expected to close on April 1, subject to the satisfaction of various closing conditions, including the receipt of certain third-party consents. CMS is not acquiring the Fremont's servicing platform or any other asset, nor is it assuming any of Fremont's pre-closing liabilities, the companies note.
