Reuters logo
Ocwen, Carrington eye Goldman service unit-sources
April 14, 2011 / 5:09 PM / 7 years ago

Ocwen, Carrington eye Goldman service unit-sources

* Ocwen, Carrington advance in Litton auction

* Litton could fetch up to $500 mln in equity

* Goldman offering 85 pct financing for the unit

* Financing to cover about $2.5 bln in Litton advances

By Paritosh Bansal

NEW YORK, April 14 (Reuters) - Goldman Sachs Group Inc’s (GS.N) mortgage servicing unit, Litton Loan Servicing, has attracted bidders including Ocwen Financial Corp (OCN.N) and Carrington Holding Co, sources familiar with the matter said.

Litton could fetch up to $500 million or so in the auction, which has advanced to the second round, the sources said, declining to be named because the sale process is not public.

Goldman is offering 85 percent financing for the deal, which would be used to finance roughly $2.5 billion of “advances.”

Companies like Litton, which collect mortgage payments from borrowers and foreclose on properties, make advances to mortgage owners when a loan goes bad, to cover things like principal and interest payments.

Goldman spokesman Michael DuVally declined to comment. (Reporting by Paritosh Bansal; additional reporting by Al Yoon and Lauren LaCapra, editing by Dave Zimmerman)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below