Goldman Cleans Up Foreclosures As Fed Orders Review

Law360, New York (September 1, 2011, 4:30 PM EDT) -- The mortgage arm of Goldman Sachs Group Inc. has agreed to halt several controversial foreclosure practices, including the robo-signing of affidavits, as part of an agreement with New York allowing Goldman to sell the unit, the state banking agency announced Thursday.

The agreement also stipulates that Goldman Sachs will forgive approximately $52 million in unpaid principal on delinquent home loans serviced by the mortgage unit, Litton Loan Serving LP.

Also on Thursday, the Federal Reserve Board announced that it has ordered Goldman to hire an independent...
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