{mosads}The review process should mirror a similar process now under way at 14 other large mortgage servicers, under a broad agreement the Fed reached in April with 10 of the nation’s largest banks.
The Fed said it plans to announce monetary penalties in addition to the remunerations to borrowers. It did not detail those penalties in the initial announcement, but said Goldman Sachs had agreed to satisfy any civil monetary penalties the Fed might assess.
The Fed’s announcement came on the same day Litton and Goldman reached a settlement with a New York banking regulator. Under the deal, they agreed to halt the controversial practice of “robo-signing” mortgage paperwork, which has been widely criticized on Capitol Hill as the fallout from the housing crisis continues.