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Goldman mulling sale of Litton Loan Servicing unit - FT
December 3, 2010 / 5:27 AM / 7 years ago

Goldman mulling sale of Litton Loan Servicing unit - FT

Dec 3 (Reuters) - Goldman Sachs is pondering the sale of Litton Loan Servicing LP, the bank’s mortgage servicing unit that was recently caught in the home foreclosure storm, the Financial Times said, citing people familiar with the situation.

If the sale happens, it would spell an end to Goldman’s three-year foray into the business of collecting home loans and foreclosing on delinquent borrowers, the newspaper said.

Goldman, which had bought Litton in 2007, has been approached by at least one potential buyer but the talks broke down over price and the sale is not yet imminent, the paper said.

However, Goldman views Litton business as only peripheral to its core investment banking and trading services, according to the paper.

The New York-based bank has been reviewing the practices of Litton after regulators and state attorneys general asked for information about its practices as part of an industry-wide probe into the foreclosure practices of banks. [ID:nN0927140]

Goldman could not immediately be reached for comment by Reuters outside regular U.S. business hours. (Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman)

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