Tags: Fed | Goldman | Mortgages

Fed: Misconduct, Negligence Found in Goldman Mortgages

Thursday, 01 Sep 2011 02:22 PM

The Federal Reserve Board announced an enforcement action against Goldman Sachs Group Inc. for a “pattern of misconduct and negligence” related to residential mortgage servicing and foreclosure processing, the central bank said.

The central bank said today the enforcement action concerns Goldman’s former subsidiary Litton Loan Servicing LP.

“The action orders Goldman Sachs to retain an independent consultant to review foreclosure proceedings initiated by Litton that were pending at any time in 2009 or 2010,” the Fed said in a press release. “The review is intended to provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified in a review of the foreclosure process.”

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