The servicing business has been going through some changes lately in the form or mergers and acquisitions. Obscene profits can be made in the servicing arena. Especially in today’s market of delinquencies and defaults.
All this spells is extra fees and income for today’s servicers.
So, it is no surprise that Litton, an affiliate of Wall Street giant Goldman Sachs, have purchased Fremont Generals massive $12.2 billion dollar servicing portfolio.
FREMONT GENERAL CORPORATION ENTERS INTO DEFINITIVE AGREEMENT TO SELL ITS REMAINING MORTGAGE SERVICING RIGHTS TO LITTON LOAN SERVICING LP
(BREA, CALIFORNIA) – May 8, 2008: Fremont General Corporation (“Fremont General” or the “Company”) (OTC: FMNT), doing business primarily through its wholly-owned bank subsidiary, Fremont Investment & Loan (“FIL”), announced today that FIL has entered into an Asset Purchase Agreement (the “Agreement”) with Litton Loan Servicing LP, a Delaware limited partnership and an affiliate of Goldman Sachs & Co. (“Litton”), that provides for the sale of FIL’s remaining mortgage servicing rights (“MSR’s”) on their $12.2 billion serviced loan portfolio (as of March 31, 2008).
Pursuant to the Agreement, at closing, Litton will pay FIL for the MSR’s and will reimburse FIL for the unreimbursed delinquency and servicing advances made by FIL and FIL’s accrued and unpaid servicing fees. The Agreement does not include the sale of FIL’s servicing platform. As a result, the Company intends to wind down its remaining loan servicing operation in Ontario, California.
The Company expects the proposed transaction to close in the second quarter of 2008. Completion of the proposed transaction is subject to the non-objection of the Federal Deposit Insurance Corporation (“FDIC”) and the California Department of Financial Institutions and the satisfaction of customary closing conditions.
With the execution yesterday of this Agreement and the previously announced agreement with CapitalSource, Inc., which is presently under review by FIL’s banking regulators, FIL has now contracted to sell substantially all of FIL’s remaining assets. The Company intends to shortly be providing an update on its status and future plans.
About Fremont General
Fremont General Corporation is a financial services holding company with $8.8 billion in total assets, at September 30, 2007. The Company is engaged in deposit gathering through a retail branch network located in the coastal and Central Valley regions of Southern California and residential real estate mortgage servicing through its wholly-owned bank subsidiary, Fremont Investment & Loan. Fremont Investment & Loan funds its operations primarily through deposit accounts sourced through its 22 retail banking branches which are insured up to the maximum legal limit by the FDIC.
The Retail Banking Division of the Bank continues to offer a variety of savings and money market products as well as certificates of deposits across its 22 branch network. Customer deposits remain fully insured by the FDIC up to at least $100,000 and retirement accounts remain insured separately up to an additional $250,000.
To find out more about Fremont General, or to subscribe to the Company’s email alert feature for notification of Company news and events, please visit www.fremontgeneral.com.
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just wanted to let you know that fremont investment & loan did a predatory leading on my contract..and im lossing my house do to this.A house thats been in my family since 1966
I have to find some place to live with my 3 small boys.I lost a caravan cause they were supoose to pay it off and didnt…i hope there freakin happy..destorying not only my life but my 3 boys ages 5,5 & 3..This house NO and i mean NO equity they striped it all…3 years ive been fighting this 3 and im up over my head….im sorry that they sold Litton a bad loan……Tina,and family
I know that this is a very very old post, still, trust me on this Tina, Litton is NOT a service provider, they too are a predatory lender, with HUGE sharks in their pool. Litton has taken everything and I mean EVERYTHING from us, and would like to take more, but, there’s nothing more I can give to them.
There’s always the next “chump” that some how ends up with them? Everything I’ve read (and been able to understand,) the every woman/man, doesn’t stand a chance.
With these type of lenders on every corner, literally, because there’s a bank on every corner, and because of the avalanche economy we’re in, the FDIC is doing their ever lovin’ best to make sure they don’t find themselves of receivership. If that’s even possible? Google “Why aren’t loans aren’t being modified?”
There is a great amount of information, one piece I found to be freeing,(besides no longer being a homeowner,) was the FDIC and Banks, have each others backs, they make it super easy for lenders to simply foreclose, recoup all of their money by a secured low low low interest loan, (*which wouldn’t be necessary if they just helped the homeowner out by extending the term of the homeowners loan,) And after they foreclose, the lender gets to KEEP your house for the sale too.
It’s a whole big “you scratch my back, and together we’ll kick the backsides of the smallest guy.” Which is you and I.
I hope you found a place to live and I certainly hope that your babies are safe and sound. It’s more than apparent, they are loved more than words can say.