Goldman Sachs is once again entertaining bids on its subprime servicing operation, Litton Loan Servicing, Houston, and has approached a handful of bidders about making an offer, according to industry officials.
According to figures compiled by National Mortgage News and the Quarterly Data Report, Litton ranks sixth among all subprime servicers with $46 billion in receivables on its books. It also functions as a subservicer.
Wednesday morning a Goldman spokesman had not returned a telephone call about the matter.
A year ago rumors surfaced that the investment banker planned to sell the Houston-based Litton, but the company denied it. "Things have changed for them," said one servicing executive who has heard about the Litton sale. He declined to elaborate.
Goldman bought Litton in late 2007 from the struggling C-BASS. No purchase price was ever disclosed on the sale. At the time Goldman also owned a small subprime lender in Fort Mill, S.C., called Senderra Funding. Eventually it closed Senderra. (Last fall C-BASS filed for bankruptcy protection.)
C-BASS was a pioneer in the CDO market — as both an investor and servicer.