Goldman Sachs To End Robo-Signing Practice

Goldman Sachs
Goldman Sachs

Goldman Sachs, Ocwen Financial Corp. and Litton Loan Servicing will end robo-signing practices and write down as much as $53 million in unpaid principal on New York mortgages as part of an eight-point agreement with an Empire State regulator.

In addition, Goldman will forgive 25 percent of the principal balance on New York home loans 60 days or more past due serviced by Litton and owned by Goldman as of Aug. 1. The investment banking giant, which is exiting the mortgage servicing business with the sale of Litton, will adopt these servicing practices if it should re-enter the servicing industry.