Consumer relief obligations relate to mortgage-backed securities
Goldman Sachs’ payment of $1.8 billion of consumer relief due under its settlement with the US Department of Justice and three states is making good progress.
The Independent Monitor of the settlements, Professor Eric D. Green says that the bank has successfully completed 71% of the total it is obligated to provide under its two mortgage-backed-securities settlements.
He has approved settlement credit for Goldman Sachs' forgiveness of first-lien principal on 794 loans and extinguishment of another 58 second-lien loans, bringing Goldman Sachs' cumulative consumer-relief credits under the settlements to a total of more than $1.25 billion.
"I am pleased to be able to confirm that Goldman Sachs continues to make steady progress toward meeting its obligation to provide Consumer-Relief valued at $1.8 billion," Professor Green said. "Nearly three years after the Settlement Agreements were signed, Goldman Sachs appears to be 71% toward completing its Consumer-Relief obligations."
The agreements were made between the lender and the DoJ in April 2016 and resolved potential claims regarding the marketing, structuring, arrangement, underwriting, issuance and sale of mortgage-based securities.
Goldman Sachs agreed to provide a total of $5.06 billion, including consumer-relief valued at $1.8 billion to be distributed by the end of January 2021.
Consumer relief paid
The modified first-lien mortgages are spread across 43 states and the District of Columbia, with 36% of the credit located in the settling states of New York, Illinois, and California. Half of the credit is located in the hardest hit areas as defined by the HUD.
The extinguishment of the 58 second lien loans are located in 27 states, with 25% of the associated credit in the three Settling States and 50% in Hardest Hit Areas.
