Fremont Sells Rest Of MSRs to Litton
Troubled Fremont General Corp., parent of Fremont Investment & Loan, has agreed to sell its remaining mortgage servicing rights to Litton Loan Services, a division of Goldman Sachs.
The servicing rights on a $12.2 billion home loan portfolio include the rights to receive servicing fees and ancillary income payable to Fremont under the servicing contracts.
Previously, Fremont had said the sale agreement does not include its Ontario, Calif., servicing platform. Fremont said in May that it planned to close down that facility. Litton also assumes the rights and obligations to make advances pursuant to the servicing agreements.
Also in May, Fremont entered into an agreement to sell other assets, including all its banking branches, to CapitalSource. The company also reached a forbearance agreement with its senior creditor.
Fremont said the deal has received the blessing of both the California Department of Financial Institutions and the FDIC. Fremont has been operating under regulatory supervision from the FDIC.
Fremont, with $8.8 billion in total assets as of Sept. 30, 2007, has a retail banking presence in Southern California. The company's stock was delisted from the New York Stock Exchange earlier this year and now trades on the "pink sheets" system.
Litton, previously an affiliate of C-BASS, was acquired by Goldman Sachs last year. Distressed mortgage investor C-BASS last year announced that it was liquidating its assets.
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