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N.Y. To Cleanup Controversial Mortgage Practices

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N.Y. To Cleanup Controversial Mortgage Practices

Business

N.Y. To Cleanup Controversial Mortgage Practices

N.Y. To Cleanup Controversial Mortgage Practices

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Officials in New York have struck a deal with major mortgage servicers to clean up some of their most controversial practices, according to The Wall Street Journal. Under the deal, the companies promise to stop signing off on foreclosure documents without fully looking over the papers in the case, as is legally required.

STEVE INSKEEP, host:

NPR's business news starts with promise from mortgage companies.

(Soundbite of music)

INSKEEP: New York State struck a deal with major mortgage servicers to clean up some of their most controversial practices, that's according to or friends at The Wall Street Journal. The Journal says New York's top financial service regulator is expected to announce a deal with three major mortgage servicing companies, including one owned by Goldman Sachs.

The Journal says that under this deal the companies promise to stop robo-signing, signing off on foreclosure documents without fully looking over the papers in the case, as is legally required.

Companies in New York account for nearly two-thirds of mortgage servicing activity, nationwide.

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