China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
Fannie Mae denies report of C-BASS servicer bid
NEW YORK (Reuters) - Mortgage finance company Fannie Mae (FNM.N) on Tuesday denied a report that it is considering a purchase of the residential loan servicing unit of C-BASS LLC, a joint venture of Radian Group Inc. and MGIC Investment Corp.
The American Banker newspaper on Tuesday said Fannie Mae, a government-chartered company, and investment bank Goldman Sachs Group Inc (GS.N) were seen as top bidders for the unit of C-BASS, which packages risky loans for sale to investors.
"We are not pursuing such an acquisition," Fannie Mae spokesman Brian Faith told Reuters.
A source familiar with the situation said Washington-based Fannie Mae abandoned talks that began several months ago.
C-BASS' servicing business, Litton Loan Servicing LP, collects payments on about $58 billion of mortgages, the American Banker said.
Fannie Mae, which has been making inroads with riskier mortgages, would view the purchase as a way of protecting its exposure to subprime, the newspaper said. A purchase by Goldman Sachs would give the New York-based company a greater presence in the industry, it added.
Goldman Sachs spokesman Michael Duvally declined to comment on a potential bid.
Radian (RDN.N) and MGIC (MTG.N) have said their $1.03 billion investment in the company could be worthless. MGIC had been counting on the sale of C-BASS, which pooled risky loans for sale to investors, before abandoning its proposed acquisition of Radian last month.
(Additional reporting by Patrick Rucker in Washington)
