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Fed orders Goldman to review foreclosures

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WASHINGTON (Reuters) - The Federal Reserve ordered Goldman Sachs to hire an outside consultant to review mortgage loans serviced by a subsidiary in order to identify and compensate borrowers who were wrongly foreclosed upon, the central bank announced on Thursday.

The Fed said it believes a monetary penalty will be needed and plans to announce one at a future date.

The subsidiary, Litton Loan Servicing LP, is being sold by Goldman to Ocwen Financial Corp.

(Reporting by Dave Clarke; Editing by Phil Berlowitz)