Sept 1 Goldman Sachs and two other firms
have agreed with the New York banking regulator to end the
practice known as robo-signing, in which bank employees signed
foreclosure documents without reviewing case files as required
by law, the Wall Street Journal said.
In an agreement with New York's financial-services
superintendent, Goldman, its Litton Loan Servicing unit and
Ocwen Financial Corp also agreed to scrutinize loan
files for evidence they mishandled borrowers' paperwork and to
cut mortgage payments for some New York homeowners, the Journal
The agreement, expected to be announced Thursday, could
provide a blueprint for other regulators as they pursue
settlements with the largest U.S. banks over allegations they
failed to properly handle home loans, the newspaper said, citing
people familiar with the matter.
Goldman and Ocwen could not immediately be reached by
Reuters for comment outside regular U.S. business hours.
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.
(Reporting by Sakthi Prasad in Bangalore; Editing by Vinu