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Goldman to Unload Servicing Giant Litton for $264M to Ocwen

Jun 06, 2011

The Goldman Sachs Group Inc. has announced that it has agreed to sell Litton Loan Servicing to Ocwen Financial Corporation for approximately $264 million. The sale price does not reflect certain assets that Goldman Sachs will retain. Goldman Sachs does not expect the sale to have any material impact on earnings in the second quarter due to the combination of the sales price and the impairment charge announced in the first quarter of 2011 primarily related to Litton. Ocwen also agreed to pay off $337.4 million in Litton Loan Servicing LP debt to Goldman, with the assistance of a new $575 million loan from Barclays, which advised Ocwen on the deal. The deal gives Ocwen Financial Corporation a mortgage servicing portfolio of approximately $41.2 billion, mostly in sub-prime mortgages. Goldman Sachs reported $220 million in expenses in the first quarter of 2011, mostly related to Litton Loan Servicing assets held for sale.  
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