The consumer-relief activity included the forgiveness of balances due on 132 second-lien mortgages, for total principal forgiveness of $7,758,855 and average forgiveness of $58,779 on individual loans. Total credit claimed and conditionally approved for those loan modifications was $3,655,290. (Under the formulas set out in the settlements, certain kinds of consumer relief earn less credit than the actual dollar amount of loan forgiveness, for example, while other kinds of relief earn more.)
The extinguished second-lien loans were spread across four states, with about 55 percent located in the settling states of Illinois and New York. Notably, 56 percent of the credit is for forgiveness of loans located in Hardest Hit Areas, census tracts identified by the U.S. Department of Housing and Urban Development as containing large concentrations of distressed properties and foreclosure activities.
Another category of consumer-relief activity reported in the period was the forgiveness of unsecured debt and other debt more junior than second liens in connection with 4,988 loans. The total principal forgiveness on those loans was $240,252,022, with average principal forgiveness of $48,166 per loan, and total credit of $107,924,047. Those loans were located in 34 states and the District of Columbia, with more than 16 percent of the associated credit in Illinois and New York and 56 percent in Hardest Hit Areas.
Total credit sought by Goldman Sachs and conditionally approved by the Monitor during the period was $111,579,337.
The April 11, 2016, agreements settled potential and filed legal claims against Goldman Sachs regarding the marketing, structuring, arrangement, underwriting, issuance and sale of mortgage-based securities. Besides Goldman Sachs and the Department of Justice, the settling parties were California, Illinois, New York, the National Credit Union Administration Board and the Federal Home Loan Banks of Chicago and Des Moines. Goldman Sachs agreed to provide a total of $5.06 billion under the agreements, including consumer relief valued at $1.8 billion, to be distributed by the end of January 2021.
Including credit for a small "test sample" of 100 loan modifications considered in the Monitor's initial report, Goldman Sachs to date has received conditional approval for $113,698,926 worth of credit.
"Goldman Sachs is off to a good start," Professor Green said.
Professor Green, a professional mediator and retired Boston University law professor, was named by the settling parties as independent Monitor with responsibility for determining whether Goldman Sachs fulfills its consumer-relief obligations. He has assembled a team of finance, accounting and legal professionals to assist in the task.
The report is available at the Monitor's website at: http://goldmansachs.mortgagesettlementmonitor.com. The website provides further details about the settlement, plus contact information for Goldman Sachs, the Department of Justice, the Attorneys General of California, Illinois and New York, and agencies that provide legal or tax advice to consumers.
The Monitor's mailing address is: Monitor of the Goldman Sachs Mortgage Settlement, P.O. Box 10310, Dublin, OH 43017-5910, and the e-mail address is email@example.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/goldman-sachs-makes-progress-towards-consumer-relief-obligation-under-mortgage-settlements-monitor-reports-300400879.html
SOURCE Monitor: Eric D. Green