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Goldman Sachs Subsidiary Agrees to End “Robo-Signing”

HeadlineSep 02, 2011

A Goldman Sachs subsidiary has struck an agreement with New York regulators to end many of its mortgage-related business practices. Goldman reached the settlement with New York State Department of Financial Services as a condition to its sale of its Litton Loan Servicing subsidiary to the firm Ocwen Financial. As part of the deal, Litton will hire an independent consultant to review foreclosures toward potential compensation to borrowers, as well as end the practice of “robo-signing” foreclosure documents without proper vetting.

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