The bank has so far fulfilled 55% of its $1.8-billion target
Goldman Sachs has almost reached the $1-billion mark towards its obligation to provide $1.8 billion in consumer relief under mortgage-related settlements it entered in April 2016, announced Eric Green, the independent monitor of the agreements’ consumer-relief portions.
So far, the bank has claimed and Green has conditionally validated approximately $993.4 million, which represents 55% of the target.
Since the monitor’s previous report on Feb. 15, the company has forgiven the balances due on 666 first-lien mortgages representing total principal forgiveness of approximately $61.6 million. The average principal forgiveness per loan is $92,508. As a result, Goldman Sachs claimed about $75.3 million in reportable credit against its obligation.
The relief covered in the latest report was spread across 41 states and the District of Columbia, with 26% of the credit located in the settling states of New York, Illinois, and California. Forty-five percent of the loans were located in “Hardest Hit Areas,” or those designated by the Department of Housing and Urban Development to have the largest concentrations of distressed properties and foreclosure activity.
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.
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