Bisys Group Buys Litton Mortgage
The Bisys Group Inc., a data processor for thrifts and community banks, said it has acquired Litton Mortgage Servicing Center of Houston.
Terms of the agreement were not disclosed.
Litton Mortgage is one of a handful of subservicers of commercial and consumer loans, who provide outsourcing to financial institutions that own loan-servicing rights.
Bisys, also of Houston, expects the acquisition to expand the range of services it can offer its 322 U.S. customers.
"Subservicing represents a major new frontier in the outsourcing trend of various bank functions," said Lynn Mangum, chairman of Bisys.
Average servicing costs have risen steadily in recent years, causing many institutions to look to outside servicers like Litton Mortgage.