Morgan Stanley is considering offloading its mortgage-servicing arm, Saxon Mortgage Services, The Post has learned.

The investment bank run by CEO James Gorman acquired the mortgage company at the height of the housing boom in 2006, and is weighing a sale in order to streamline its business and jettison assets in the aftermath of the mortgage meltdown.

Sources cautioned that Morgan Stanley hasn’t made any definitive decision about what to do with the asset.

Morgan Stanley acquired Saxon when investment bankers harbored an insatiable hunger for distressed mortgage assets, which were sliced and diced and then shopped to investors as mortgage securities.

Goldman Sachs is also shopping its mortgage servicing company, Litton Loan Servicing, which it acquired around the same time as Morgan Stanley.

Among the suitors for Litton are larger rival Ocwen Financial and investment firm Carrington Holding Co. Prospective buyers submitted second-round bids last Friday, according to sources.

Litton could fetch as much as $500 million in an auction, which is about $70 million more than Goldman originally paid for the business.

Morgan Stanley shelled out about $700 million for Saxon, although it’s unclear what it might be able to fetch in a possible sale, one source said.

Last year, Morgan Stanley’s Saxon unloaded a loan servicing portfolio valued at about $7 billion to Ocwen.

Lehman Brothers Holdings has also put its mortgage servicing firm, Aurora Loan Services, on the chopping block.

A potential Saxon sale would come as mortgage servicers are under heavy scrutiny by regulators and all 50 state attorneys general, who are aiming to negotiate a sweeping settlement over improper foreclosures.

Moreover, the Justice Department has been investigating Saxon for improperly foreclosing on military families.