Goldman Unlikely to Jump Back Into Mortgage Servicing Business
September 12, 2011
Goldman Sachs will likely have no appetite to wade back into the mortgage servicing business anytime soon, following the enforcement action taken against it last week by the Federal Reserve Board a regulatory move that still leaves monetary penalties on the table and likely to be imposed before long. The action orders Goldman Sachs to retain an independent consultant to review foreclosure proceedings initiated by Litton Loan Servicing LP, Goldmans former mortgage servicing platform, that were pending at any time in 2009 or 2010. 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, according to the Fed.