Fremont sells 13% of servicing rights
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Fremont General Corp., a Brea-based lender forced by regulators to exit the sub-prime mortgage business, agreed to sell the servicing rights on $1.9 billion of loans to hedge fund operator Carrington Capital Management.
Fremont said the rights, sold for an undisclosed price, represented 13% of the mortgages serviced by Fremont.
Carrington had already bought the loans from Fremont, the lender said.
Fremont was the country’s fifth-biggest lender to consumers with poor or limited credit until regulators forced it to stop making loans a year ago. The company said this week that it would delay an interest payment on $6.6 million of its debt as it negotiated with the principal holder of the debt.
The company’s stock rose to 59 cents in after-hours trading, after adding 2 cents to 44 cents in the regular session.
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