Athens Greece - Appia Capital in Talks with Subprime Mortgage Servicer
Released on: October 18, 2007, 8:13 am
Press Release Author: Invest Now News
Industry: Financial
Press Release Summary: Appia Capital, according to a source, may buy Litton Loan Servicing LP, the Houston-based servicer of U.S. subprime mortgages, said people within the financial sector.
Press Release Body: It seems Appia Capital's interest was heightened when it was revealed that Litton\'s parent, Credit-Based Asset Servicing and Securitization LLC, hired Blackstone Group LP in August to help raise capital. Litton is the 12th-largest subprime servicer and collects payments on about $46 billion of loans to borrowers with poor credit, according to National Mortgage News. The company may fetch about $500 million, based on valuations given to similar portfolios. Appia Capital spokesman reportedly stated, "Our interest in Litton follows Wilbur L. Ross Jr.\'s $435 million offer on Sept. 21 for the servicing unit of bankrupt lender American Home Mortgage Investment Corp. in Melville, New York, and we are hoping that it can increase the value of mortgage assets by reworking loan terms to make it easier for borrowers to pay their debt." All parties have declined to comment any further on the deal.
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