Litton Loan Servicing, Goldman Sachs’ little mortgage servicer, may be on the auction block. The Financial Times reports that a buyer approached Goldman about a potential deal, but talks soured over price. But sources also told the FT that Goldman doesn’t consider Litton Loan part of its core business.
To Goldman, Litton Loan may be a shade worse than merely extraneous. In early November, Goldman joined other major banks like JPMorgan Chase, Bank of America and Ally’s GMAC in suspending foreclosures amid revelations that lenders were illegally rubber-stamping repossession documents. The investment bank paid a historic $550 million in a fraud settlement with the Securities and Exchange Commission in June, and its name has occasionally popped up in the latest FBI insider-trading probe. Taking heat from many directions, Goldman may have decided Litton Loan isn’t worth the additional regulatory scrutiny.
mtaylor [at] observer.com | @mbrookstaylor