Fremont General bank unit to sell mortgage loan servicing rights to Carrington unit

By Caroline Salls

Pittsburgh, March 20 - Fremont General Corp. wholly owned bank subsidiary Fremont Investment & Loan agreed to sell the servicing rights to mortgage loans held in securitization trusts sponsored by an affiliate of Carrington Capital Management, LLC to Carrington Mortgage Services, LLC, according to a Fremont news release.

The mortgage servicing rights to be sold are associated with underlying mortgage loans with a total remaining principal balance of $1.9 billion, which represents about 13% of the total remaining mortgage loan principal balance currently serviced by the bank.

According to the release, an affiliate of Carrington Capital previously acquired these mortgage loans from Fremont Investment & Loan before the securitizations were completed.

Fremont said the sale is expected to close on April 1, subject to various closing conditions, including the receipt of third-party consents.

In addition to the purchase price for the mortgage servicing rights, the bank will be reimbursed over a 12-month period for outstanding advances made up to the closing date.

Fremont said Carrington Mortgage is not buying the bank's servicing platform, nor is it assuming any of the bank's pre-closing liabilities.

Carrington Mortgage is a wholly owned subsidiary of Carrington Capital.

Fremont General is a financial services holding company located in Santa Monica, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.