Mortgage Daily Logo

Litton to be Sold

Mortgage News

A pending sale of Litton Loan Servicing LP will mark the third parent the servicer has had during the past five years.

The deal was disclosed Monday in a public filing by Ocwen Financial Corp.

Ocwen, which the filing says is based in Atlanta, reached an agreement Sunday to acquire the servicer from The Goldman Sachs Group Inc.

The $264 million all-cash transaction includes interest-only servicing strips now owned by Goldman, Sachs & Co. Ocwen will also pay $337 million to retire some of Litton’s outstanding debt on an existing advance facility that is currently provided by a Goldman Sachs affiliate.

Ocwen will enter into a new facility to finance approximately $2.47 billion of servicing advances associated with the business. Goldman Sachs provided a term sheet for a $2.1 billion servicing advance facility that will cover all of the servicing advances outstanding as of the closing date.

Other servicing advance commitments are outstanding from The Royal Bank of Scotland plc, Barclays Bank PLC and Bank of America, N.A. In addition, Barclays has committed to provide a senior secured term loan facility of $575 million in connection with the acquisition.

Litton Mortgage Servicing Center was launched in 1988 by Larry B. Litton Sr. The Houston-based company was founded as a provider third-party sub-servicing for distressed mortgages.

Litton was acquired by Credit-Based Asset Servicing and Securitization LLC in 1996, then sold to Goldman Sachs in late 2007 as C-BASS descended into bankruptcy.

Litton says it currently employs more than a thousand people.

Litton serviced $41.2 billion as of March 31. Mortgages are serviced from offices in Dallas and Houston.

As of Dec. 31, 2010, Ocwen’s residential servicing portfolio was $73.9 billion.

The acquisition needs to close by Nov. 1, though it can be extended to Jan. 1, 2012, if either party fails to obtain required regulatory approvals.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

MBS Statistics

MBS Statistics Non-Agency Issuance 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 Private Label RMBS Issuance (S&P) $80 billion to $100 billion (est) $70 billion $34...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI