Feds announce partial settlement with 'robo signing' servicers

State attorneys general continue with separate probe

The premier event for luxury agents and brokers
Luxury Connect | Oct. 16-18 | Beverly Hills

In a partial settlement addressing so-called "robo-signing" foreclosure practices, the nation’s largest loan servicers have agreed to hire outside consultants to review foreclosures initiated in 2009 and 2010, and to compensate homeowners who should not have been foreclosed on.

Consent agreements announced Wednesday by the Office of the Comptroller of the Currency, the Federal Reserve and the Office of Thrift Supervision also prohibit loan servicers from foreclosing on homeowners who have been approved for loan modifications.