The bank has provided almost $90 million of principal forgiveness since May
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Goldman Sachs has provided almost $90 million of principal forgiveness to borrowers since May 1 as part of its consumer-relief obligation under mortgage-related settlements with the Department of Justice and three states.
With the update, the bank has now satisfied 40% of its consumer-relief obligation, according to Eric Green, independent monitor of the obligations. Goldman Sachs received conditional credit of $80.2 million, bringing the cumulative credit conditionally validated by the monitor to $724.5 million.
During the most recent period, Goldman Sachs provided relief including forgiveness of the balances due on 343 first-lien mortgages, resulting in total principal forgiveness of about $38.3 million. The average principal forgiveness was $111,532 per loan. Total reportable credit was about $57.5 million after the application of appropriate crediting calculations and multipliers.
These mortgages are located in 38 states and the District of Columbia. Of the total credit, 32% is for loans located in the settling states of New York, Illinois, and California. Green said that 57% of the credit is for forgiveness of loans located in areas that contain large concentrations of distressed properties and foreclosure activities as identified by the Department of Housing and Urban Development.
In addition to these mortgages, Goldman Sachs also received credit for the forgiveness of 625 second-lien loans with a total principal forgiven of about $51.1 million, or an average principal forgiveness of $81.7 million. After application of appropriate crediting calculations and multipliers, total reportable credit for these loans was $22.8 million. The mortgages are located in 47 states and the District of Columbia, with 46% of the credit located in the settling states and 47% in the hardest-hit areas.
Under the settlements, Goldman had agreed to provide a total of $5.06 billion, of which $1.8 billion is consumer relief. This is set to be distributed by the end of January 2021.
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Under the settlements, Goldman had agreed to provide a total of $5.06 billion, of which $1.8 billion is consumer relief. This is set to be distributed by the end of January 2021.
Related stories:
Goldman Sachs making progress on mortgage settlements
Bank of America has nearly paid all $7 billion in consumer relief for toxic mortgages – report
