As special loan servicers gain market share in the subprime residential mortgage business, two competing business models have emerged - each based on the servicers' exposure to the cash flow of the portfolio.

For example, Litton Loan Servicing, through parent company C-BASS, becomes an investor and owns a portion of the residuals or the first-loss piece in a transaction the company is servicing.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.