CSFB, DLJ to Buy Subprime Servicer

SPS Holding Corp., the Salt Lake City-based servicer of nonprime mortgage loans, says its stockholders have signed a letter of intent with Credit Suisse First Boston and its affiliate, DLJ Mortgage Capital, that will likely lead to a sale of the servicer to CSFB.Describing the deal as a "strategic agreement," SPS said it expects (as part of the pact) to enter into a servicing rights purchase agreement with CSFB to acquire servicing rights related to mortgage loans totaling about $6 billion over the next 12 months. SPS said it expects to begin acquiring servicing rights from CSFB in the near future. "Any transaction related to the stock of SPS will be subject to the satisfaction of due diligence by all parties," SPS said. The company said it expects the transaction to close within six months if a definitive agreement is signed. SPS, formerly known as Fairbanks Capital, services about 270,000 nonprime residential mortgage loans from facilities in Salt Lake City and Jacksonville, Fla.