Goldman Integrates Avelo, Litton Loan Servicing

Litton Loan Servicing, LP is now the de facto servicing arm of Goldman Sachs (GS), with the Wall Street bank having completed integration of the two shops early last month, sources suggested to HW on Tuesday morning. Acknowledging the integration, Fitch Ratings said Tuesday morning that it had withdrawn all residential servicer ratings from Avelo; the company was rated RPS3 in most major servicing categories, including primary and special servicing for subprime and Alt-A loan products. Fitch noted that the intregration of Avelo with Litton was completed on August 1. Litton maintains servicing sites in Houston, TX; Atlanta, GA and Dallas, TX. Goldman picked up the servicing shop from a failing Credit-Based Asset Servicing and Securitization, or C-BASS, in October of last year for a reported $500 million. Litton maintains Fitch’s highest primary servicer ratings for high LTV and subprime loan production, as well as for residential special servicing; the company also has high marks in commercial and manufactured housing servicing operations. The company recently picked up a $12.2 billion servicing portfolio from failed S&L Fremont Investment & Loan, as Goldman has looked to expand its servicing footprint during the U.S. housing crisis. Disclosure: The author held no positions in firms mentioned in this story when it was published; indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.