Goldman Sachs makes progress on mortgage-related settlement

The bank has forgiven $78.7 million in mortgages since Aug. 1

Goldman Sachs makes progress on mortgage-related settlement

Goldman Sachs has forgiven a total of $78.7 million in principal on 746 first-lien mortgages since Aug. 1 as it moves closer to fulfilling its $1.8-billion consumer-relief obligation under two mortgage-related settlement agreements.

Independent monitor Eric Green announced that the latest increment brought the total amount of credit claimed and conditionally validated to about $1.2 billion or 67% of the $1.8-billion target.

The latest total averaged $105,467 in principal forgiveness per loan. The total reportable credit was $79.3 million after the application of appropriate crediting calculations and multipliers. Goldman Sachs has now modified a total of 10,671 mortgages.

Green said the modified mortgages are spread across 42 states and the District of Columbia, with 32% of the credit located in the settling states of New York, Illinois, and California, and 47% of the credit located in Hardest-Hit Areas, or census tracts identified by the Department of Housing and Urban Development as containing large concentrations of distressed properties and foreclosure activities.

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-backed 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.