Goldman Sachs reached an agreement with New York state banking regulator Benjamin Lawsky over alleged wrongful home foreclosures.  Goldman will compensate some home loan borrowers for wrongful foreclosures, and agreed to forgive 25% of the principal balance on mortgages that are 60 days overdue, a stipulation worth $53 million. The agreement, which also includes Ocwen Financial, contains several measures to strengthen foreclosure oversight.  On the plus side for Goldman, it will allow the firm's planned sale of Litton Loan Servicing to proceed. The main goal of the agreement for Mr. Lawsky was to see an end to the practice of robosigning, in which bank employees signed foreclosure documents without review.  Goldman, Ocwen, and Litton all agreed to stop robosigning, establish new requirements for employees handling foreclosures and withdraw pending foreclosure actions that are based on faulty paperwork. In return, Lawsky agreed to issue a "no objection" letter to Ocwen's proposed purchase of Litton for $264 million.  Goldman, who purchased Litton in 2007 for $430 million, will be happy to see it go.   [CNBC, 9/1/11]