Goldman Sachs and Morgan Stanley have agreed to pay $557million in cash payments and other assistance to help mortgageborrowers.

The payout is part of an agreement the two banks reached withthe Federal Reserve Board as a result of enforcement actions fordeficient practices in mortgage loan servicing and foreclosureprocessing.

Previously, the Office of the Comptroller of the Currency andFed reached agreements with 10 additional big banks. IncludingGoldman Sachs and Morgan Stanley, the regulators have provided morethan 4 million borrowers with a total of $3.5 billion in cashcompensation, while an additional $5.5 billion will be provided bythe servicers for mortgage assistance.

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