Goldman Sachs days away from selling mortgage business Litton Loan Servicing to Ocwen, Bloomberg reports, citing source

Michelle Rivera

LOS ANGELES , June 3, 2011 (Industry Intelligence) – Goldman Sachs Group Inc. is days away from closing the sale of Litton Loan Servicing LP to Florida-based mortgage servicer Ocwen Financial Corp., according to an undisclosed source familiar with the negotiations, Bloomberg reported June 2.

The news comes two months after Goldman wrote down the value of the mortgage-servicing business by an estimated US$200 million, Bloomberg reported.

Houston-based Litton is one of the mortgage-servicing businesses under investigation by 50 state attorneys general for allegedly using faulty paperwork to foreclosure on homes, which “may result in the imposition of fines or other regulatory action,” Goldman Sachs said in a regulatory filing with the U.S. Securities and Exchange Commission last month, Bloomberg reported.

The primary source of this article is Bloomberg, New York, New York, on June 2, 2011.

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