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Goldman unit to stop controversial mortgage practices in deal with NY regulator
NEW YORK (AP) ' Goldman Sachs's mortgage subsidiary has agreed to stop many of its controversial mortgage-related practices in a settlement with a New York state banking regulator.
The New York's Department of Financial Services and Banking Department said Thursday the settlement was a condition to Goldman Sachs Group Inc.'s ability to sell its Litton Loan Servicing subsidiary to a mortgage company Ocwen Financial Corp.
As part of the deal, the Goldman subsidiary said it will stop the practice of robo-signing mortgage paperwork. The practice, which involved signing mortgage affidavits without reviewing the loan documents and notarizing them in a way that violates state law, led to a temporary halt to most mortgage foreclosures in the fall of 2010.