The company has forgiven balances due on 649 first-lien mortgages since August
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Goldman Sachs has complied with 46% of its obligation to provide consumer relief worth $1.8 billion under mortgage-related settlements it entered in April 2016, according to Eric Green, the independent monitor of the agreements’ consumer-relief portions.
The company has forgiven the balances due on 649 first-lien mortgages during the period since the monitor’s previous report on Aug. 1. The mortgages represent total principal forgiveness of approximately $70.8 million, with the average principal forgiveness at $109,131 per borrower.
As a result, the company claimed about $96.4 million in reportable credit against its $1.8 billion obligation.
"Goldman Sachs continues to make progress," Green said. "Approximately 19 months after the settlement agreements were signed, Goldman Sachs appears to be 46% of the way toward completing its consumer-relief obligations."
The mortgages covered in the report are spread across 43 states and the District of Columbia, with 26% located in the settling states of New York, Illinois, and California. Loans in the Hardest Hit Areas – designated by the Department of Housing and Urban Development to have the largest concentrations of distressed properties and foreclosure activity – accounted for 37%.
According to the report, a portion of the credit is undergoing additional testing. In case the testing is completed satisfactorily, the total credit conditionally validated by the monitor would reach $820.9 million.
The consumer-relief obligations are part of two agreements entered by Goldman Sachs with the Department of Justice and the states of California, Illinois, and New York to settle potential and filed legal claims related to mortgage-based securities. The company 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.
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The company has forgiven the balances due on 649 first-lien mortgages during the period since the monitor’s previous report on Aug. 1. The mortgages represent total principal forgiveness of approximately $70.8 million, with the average principal forgiveness at $109,131 per borrower.
As a result, the company claimed about $96.4 million in reportable credit against its $1.8 billion obligation.
"Goldman Sachs continues to make progress," Green said. "Approximately 19 months after the settlement agreements were signed, Goldman Sachs appears to be 46% of the way toward completing its consumer-relief obligations."
The mortgages covered in the report are spread across 43 states and the District of Columbia, with 26% located in the settling states of New York, Illinois, and California. Loans in the Hardest Hit Areas – designated by the Department of Housing and Urban Development to have the largest concentrations of distressed properties and foreclosure activity – accounted for 37%.
According to the report, a portion of the credit is undergoing additional testing. In case the testing is completed satisfactorily, the total credit conditionally validated by the monitor would reach $820.9 million.
The consumer-relief obligations are part of two agreements entered by Goldman Sachs with the Department of Justice and the states of California, Illinois, and New York to settle potential and filed legal claims related to mortgage-based securities. The company 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.
Related stories:
Goldman Sachs moves forward with mortgage-related settlements
Morgan Stanley nears completion of mortgage-related settlement
