Google+
  • Ocwen38.00+0.20 +0.53%
  • Zillow103.59+1.45 +1.42%
  • Trulia34.49-0.12 -0.35%
  • NationStar31.96+1.55 +5.10%
  • CoreLogic28.46-0.37 -1.28%
  • RE/MAX27.88-0.10 -0.36%
  • Fannie Mae3.99+0.03 +0.76%
  • Freddie Mac3.99+0.03 +0.76%
  • Wells Fargo49.32-0.27 -0.54%
  • CitiMortgage48.33-0.07 -0.14%
  • Bank of America16.34-0.03 -0.18%
  • Auction.com0.00N/A N/A
  • Fidelity National Financial31.85+0.52 +1.66%
  • Black Knight Financial0.00N/A N/A
  • AUDUSD=X0.9263N/A N/A
  • USDJPY=X102.288N/A N/A
  • WP Stock Ticker
To show sotck chart
Home | NY Approves Goldman Sachs’ Sale of Litton with Stipulations
Print This Post Print This Post

NY Approves Goldman Sachs’ Sale of Litton with Stipulations

The New York Department of Financial Services is including several stipulations with its approval of Goldman Sachs' sale of its Litton Loan Servicing unit to special servicer Ocwen Financial.Goldman Sachs has agreed to principal reductions of $53 million on Litton mortgages. In addition, the agreement forged between Goldman and New York's banking superintendent addresses the illegal practice of robo-signing and includes rules to ensure only the note-holder pursues foreclosure actions.

The New York Department of Financial Services and Banking Department is including several stipulations with its approval of ""Goldman Sachs'"":http://www2.goldmansachs.com/?cid=PS_01_05_06_99_01_04 sale of its Litton Loan Servicing, LP, to special servicer ""Ocwen Financial Corp."":http://www.ocwen.com/

[IMAGE]

The acquisition - approved Thursday with the signing of the agreement - makes Florida-based Ocwen the 12th largest servicer in the country.

Goldman Sachs has agreed to principal reductions of $53 million on Litton mortgages.

In addition, the agreement forged between Goldman Sachs and New York's banking superintendent Benjamin M. Lawsky addresses the illegal practice of robo-signing and requires enhanced rules to ensure only the note-holder take any foreclosure actions on homeowners.

The agreement also requires servicers to provide a single point of contact to borrowers in foreclosure or those seeking modification.

The single point of contact is a common practice among special servicers and is already a requirement for all

[COLUMN_BREAK]

modifications performed through the ""Home Affordable Modification Program."":https://www.hmpadmin.com/portal/index.jsp

""This agreement provides important consumer protections for homeowners who have found themselves in dire straits due to the financial crisis,"" Superintendent Lawsky said.

""Our agreement sets a new higher standard for the residential mortgage servicing industry, whose troubling foreclosure and servicing practices we have been investigating along with other regulators across the country,"" Lawsky continued.

""Goldman Sachs, Ocwen and Litton have now all agreed to put the rights of homeowners ahead of their profit margins by implementing these changes,"" Lawsky concluded.

On the same day as Lawsky's announcement of his agreement with Goldman Sachs, the ""Federal Reserve Board"":http://www.federalreserve.gov/ announced its own set of ""requirements"":http://www.federalreserve.gov/newsevents/press/enforcement/20110901b.htm for the investment bank.

Responding to past iniquities in its mortgage servicing, the Fed is requiring Goldman Sachs to employ an independent party to review Litton's foreclosure actions between 2009 and 2010.

""The foreclosure review will be conducted consistent with the reviews currently underway at the 14 large mortgage servicers that consented to enforcement actions brought by the banking agencies on April 13, 2011,"" the Fed said in its announcement.

In addition, if Goldman Sachs chooses to service mortgages at any time while the enforcement actions are still in effect, it must adopt the same rules as the other servicers in question.

Goldman Sachs will also be required to pay monetary penalties.

Discover Business Internet Radio with Mortgage Markets Today on BlogTalkRadio

About Krista Franks Brock

Krista Franks Brock
Krista Franks Brock is a regular contributor to DSNews.com and TheMReport.com. She previously served as managing editor of DS News magazine. Prior to joining DS News, she was managing editor of Southern Distinction, a regional lifestyle magazine based in Athens, Georgia. She is currently a freelance writer and editor for various online and print publications. She holds degrees in journalism and art from the University of Georgia, where she also earned a minor in Spanish.

Leave a Reply

Scroll To Top