Fremont Sells 13 Percent of Servicing Rights

Los Angeles Times (03/21/08)
Fremont General Corp. has decided to sell the servicing rights on $1.9 billion of loans to Carrington Capital Management, a hedge fund operator that previously purchased the loans from Fremont. The California-based lender, which was forced by regulators to exit the subprime mortgage business a year ago, reports that these rights represented 13 percent of the mortgages it serviced. Fremont has further disclosed that it will delay an interest payment on $6.6 million of its debt as it negotiated with the principal holder of the debt.