A New York state banking regulator said on Thursday that it had reached a pact with Goldman Sachs Group Inc on foreclosure processes that will allow the planned sale of its Litton Loan Servicing LP to continue.
In an agreement with New York financial-services superintendent Benjamin Lawsky, Goldman, Litton and Ocwen Financial Corp agreed to stop a practice known as robosigning, in which bank employees signed foreclosure documents without reviewing case files as required by law.
Goldman also agreed to write down $53 million in unpaid mortgage principal to assist struggling homeowners.
Litton, a provider of servicing and subservicing of primarily non-prime residential mortgage loans, is in the process of being acquired by Ocwen for $264 million. The agreement announced on Thursday will allow that deal to continue, the superintendent's office said.