logo
  Join        Login             Stock Quote

Goldman (GS), Morgan Stanley (MS) To Pay $557M In Fed Foreclosure Settlement

 January 16, 2013 10:50 AM
 


(By Balachander) Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) have agreed to pay a total of $557 million to settle federal complaints of deficient practices in mortgage loan servicing and foreclosure processing.

Under the agreement, more than 220,000 borrowers whose homes were in foreclosure in 2009 and 2010 with the former subsidiaries of Goldman Sachs (Litton Loan Servicing LP) and Morgan Stanley (Saxon Mortgage Services, Inc.) will receive cash compensation.

[Related -Bank Stocks: The Misbegottenness of the Volcker Rule Truly Knows No Bounds]

The sum paid by Goldman Sachs and Morgan Stanley includes $232 million in direct payments to eligible borrowers and $325 million in other assistance, such as loan modifications and forgiveness of deficiency judgments.

The agreements announced with the U.S. Federal Reserve are similar to those announced earlier this month between 10 mortgage servicing companies.

Combined, the 12 companies will pay around $9 billion, U.S. federal regulators said.

The Fed said more than 4 million borrowers will receive a total of $3.5 billion in cash compensation following the addition of Goldman Sachs and Morgan Stanley. An additional $5.5 billion will be provided by the servicers for mortgage assistance.

The Fed had reached agreements with Aurora, Bank of America (BAC), Citibank (C), JPMorgan Chase (JPM), MetLife Bank (MET), PNC, Sovereign, SunTrust (STI), U.S. Bank, and Wells Fargo (WFC).

[Related -Gold hasn’t lost its allure in my portfolio]

The federal regulator said it continues to work to reach similar agreements with other servicers that are not yet parties to the agreements, but that are also subject to similar enforcement actions.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.