Fed sanctions Goldman over foreclosure practices

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Fed sanctions Goldman over foreclosure practices
WASHINGTON (MarketWatch) -- The Federal Reserve on Thursday sanctioned Goldman Sachs over deficient practices involving residential mortgage loan servicing and foreclosure processing at its former subsidiary, Litton Loan Servicing LP, in what's commonly referred to as the "robo-signing" scandal. 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 and provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified. The Fed added that monetary sanctions are "appropriate" and that it will announce them later.