Is Goldman Hunting for a Platform?

Goldman Sachs & Co. may be shopping for a servicing platform as it readies the unveiling of its new, nonprime mortgage conduit, industry sources said.

As Mortgage Servicing News went to press this month, Goldman officials declined to comment on both its conduit plans as well as its appetite for a servicing operation.

Little is known about its conduit except that it intends to purchase subprime and alt-A loans from funders. Which firm will service the Goldman loans remains unclear.

Among investment banking firms, Goldman is late to the nonconforming party, a niche dominated by such Street firms as Lehman Brothers, which owns Aurora Loan Services of Colorado, and Bear Stearns which owns EMC Mortgage, Irving, Texas. (ALS and EMC service their own loans.)

Investment bankers say it makes sense that Goldman, if not now, eventually, would want a servicing platform for its conduit.

"The talk is that they want a place to park loans for a while," said one servicing advisor.

One possibility might be Provident Bancorp's subprime unit, PCFS Financial Services, Cincinnati, a $12 billion servicer. But one mortgage banker said the asking price is a bit too high at $2 ...