Goldman Sachs has agreed to sell its residential mortgage servicing subsidiary to Ocwen Financial Corp.

Ocwen will pay $263.7 million in cash to acquire Litton Loan Servicing. According to Ocwen’s filing with the Securities and Exchange Commission on Sunday, this amount could be adjusted at closing.

In addition to the cash purchase price, Ocwen will lay out another $337 million to take care of some of Litton’s outstanding debt. As part of the transaction, Ocwen has also agreed to finance about $2.47 billion of servicing advances associated with the business.

The deal will result in Ocwen’s acquisition of a servicing portfolio of approximately $41.2 billion in unpaid principal balance of primarily non-prime residential mortgage loans. Ocwen, a Florida-based special servicer, also acquires Litton’s servicing platforms in Houston, Texas and Dallas, Texas.

Goldman Sachs purchased Litton in 2007. According to a report by Bloomberg News, a number of investment firms were buying mortgage servicers at that time to help them better understand the market, and profit from buying discounted loans. Goldman disclosed that it was considering selling Litton in March of this year.

Ocwen noted in its regulatory filing that Goldman will retain liability for any fines and penalties that could be imposed by government authorities relating to Litton’s foreclosure and servicing practices in connection with the robo-signing settlements. The investment bank has also agreed to cover certain losses arising from third-party claims with respect to Litton’s servicing agreements.

Last summer, Ocwen purchased HomEq Servicing, the U.S. mortgage servicing business of Barclays Bank, for $1.3 billion. That transaction added a servicing portfolio of approximately $28 billion in home loans to Ocwen’s business.