Goldman Sachs Suspends Evictions and Foreclosures
Goldman Sachs's (GS) mortgage-servicing business has temporarily suspended evictions and foreclosures in a number of unnamed states, the investment bank disclosed in a regulatory filing today.
Goldman said it's reviewing loan practices at Litton Loan Servicing, the firm's residential mortgage-servicing subsidiary, in response to requests from regulators and states attorneys general who are scrutinizing the banking industry's foreclosure practices.
"Litton has temporarily suspended evictions and foreclosure and real estate-owned sales [properties in foreclosure that didn't get resold and revert back to the lender] in a number of states, including those with judicial foreclosure procedures," Goldman said in the filing. "As of the date of this filing, the firm is not aware of foreclosures where the underlying foreclosure decision was not warranted."
Goldman added that as of Sept. 30, the value of its mortgage-servicing rights was not material, and any impact on their value would not be material to the firm.
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