Litton Loan Servicing LP is a Houston-based firm that services prime and subprime residential mortgages. It specializes in reworking troubled mortgages to help borrowers pay their debt. The company services about $70 billion in mortgages. Larry Litton, who remains at the helm, founded it in 1988.
Litton is a subsidiary of Goldman Sachs Group Inc. Goldman acquired Litton in 2007 from Credit-Based Asset Servicing & Securitization LLC, a subprime mortgage firm.
Goldman, without admitting any wrongdoing, recently settled a subprime inquiry with the state of Massachusetts, according to The Wall Street Journal. The state did not specify any potential legal violations by Goldman and said it wasn't directly involved in loan originations. Goldman purchased loans and facilitated companies that made loans.