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.

(Reporting by Lauren Tara LaCapra; additional reporting by Sakthi Prasad in Bangalore; Editing by Vinu Pilakkott)

Goldman sachs Mortgage