Goldman weighs sale of loan servicing unit: source

NEW YORK (BestGrowthStock) – Goldman Sachs (GS.N: ) has been weighing a potential sale of mortgage servicer Litton Loan Servicing, one of several companies caught up in probes into foreclosure practices, a source familiar with the matter said.

Goldman has been asking parties if they would be interested in the business, the source said on Friday.

Goldman, which bought Litton in 2007, has been approached by at least one potential buyer but the talks broke down over price and the sale is not yet imminent, according to the Financial Times, which first reported the news.

Goldman views Litton as only peripheral to its core investment banking and trading services, the paper said.

Goldman declined to comment. The source is anonymous because these talks are not public.

Goldman said last month it was reviewing the practices of Litton after regulators and state attorneys general asked for information about its practices as part of an industry wide probe into the foreclosure practices of banks.

Goldman said in a regulatory filing at the time that the mortgage servicing unit had “temporarily suspended evictions and foreclosure and real estate owned sales in a number of states, including those with judicial foreclosure procedures.”

The firm said at the time that it had not found evidence of any foreclosures that were unwarranted and that it does not expect its foreclosure suspension “to lead to a material increase in its mortgage servicing-related advances.

Goldman shares were off 65 cents or 0.4 percent at $161.85 during midday trading on the New York Stock Exchange.

(Reporting by Paritosh Bansal; Additional reporting by Elinor Comlay in New York and Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman, Phil Berlowitz)

Goldman weighs sale of loan servicing unit: source