Fremont sells mortgage rights to Goldman affiliate
NEW YORK (Reuters) - Fremont General Corp FMNT.PK, which is selling much of its operations after quitting subprime mortgage lending last year, on Thursday said it agreed to sell its remaining mortgage servicing rights to Litton Loan Servicing LP, an affiliate of Goldman Sachs Group Inc (GS.N: Quote, Profile, Research).
Terms were not disclosed. The sale covers rights on a $12.2 billion serviced loan portfolio. Fremont said the sale does not include its loan servicing platform, but that it intends to close its remaining loan servicing business in Ontario, California.
Fremont said it has now contracted to sell substantially all assets of its Fremont Investment & Loan unit, including a sale announced last month of its bank branches and deposits to CapitalSource Inc (CSE.N: Quote, Profile, Research).
Based in Brea, California, Fremont was one of the nation's 10 largest subprime lenders until the Federal Deposit Insurance Corp ordered it in March 2007 to stop making risky home loans.
(Reporting by Jonathan Stempel; editing by Carol Bishopric)
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