Could "robo-signing" be on the way out?
Robo-signing is the now-notorious practice of agents who work for major mortgage lenders allegedly signing documents without having properly reviewed them, in order to speed struggling borrowers into foreclosure. A task force of all 50 state attorneys general is currently probing the banks' alleged use of the procedure, among other shady practices.
Today, New York's top banking regulator announced a deal with three financial firms, including Wall Street giant Goldman Sachs, to end the practice, the Wall Street Journal reports. The companies also agreed to look through reams of files for evidence they mishandled borrowers' paperwork, and to reduce mortgage payments for some New York homeowners.
You can read more about the deal here.