Fed Sanctions Goldman Sachs Over Shady Mortgage Practices

The Federal Reserve sanctioned Goldman Sachs over a former subsidiary’s use of “robo-signing,” an all-too-common procedure in which foreclosure documents were processed without anyone actually examining the case. The Fed action orders Goldman to retain an independent consultant to review foreclosure proceedings initiated over a certain period of time by Litton Loan Servicing LP, which was owned by Goldman, and to “provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified.” Monetary sanctions will likely be announced later, as well.