Over the last few months, Morgan Stanley handed out more than $100 million in consumer relief in the state of New York, pushing the company past the 25% mark in its consumer relief obligations as part of the $3.2 billion settlement it reached earlier this year.
The settlement, which is over its “deceptive” mortgage bond practices in the run-up to the financial crisis, required Morgan Stanley to provide $400 million in consumer relief for New York residents affected by Morgan Stanley’s alleged actions, set to be distributed by the end of September 2019.
A few months ago, a report from Eric Green, the independent monitor of the consumer-relief portion of the settlement, showed that Morgan Stanley had begun fulfilling those consumer relief obligations.
Now, a new report from Green’s office shows that Morgan Stanley is more than a quarter of the way through its consumer relief obligations.
According to Green’s newest report, his office reviewed and conditionally approved credit of $100.2 million since early August for Morgan Stanley’s consumer-relief activities.
Combined with the $10.5 million of conditional credit approved in August, Morgan Stanley has now earned total conditional credit of $110.7 million, or 27% of its $400 million obligation.
“Morgan Stanley is off to a good start,” Green said.
According to Green, the largest portion of the consumer relief credit Morgan Stanley received in this latest report came from the bank’s forgiveness of 502 second-lien loans, totaling $57,587,469.
Green’s office said that 302 of those forgiven second-lien loans were in Hardest Hit Areas, or neighborhoods defined by the Department of Housing and Urban Development as having suffered the worst economic damage from the 2008 mortgage crisis.
The next largest section of credit came from Morgan Stanley providing $30,753,658 for funding critical-need housing developments and associated services in New York.
More than 525 affordable housing units are being created in the recipient developments, Green’s office said.
Additionally, Green’s office stated that Morgan Stanley also received credit for:
- $8,337,500 for a grant to assist local government units and other eligible organizations in New York in acquiring non-performing loans
- $1,949,309 for forgiveness of four first-lien loans
- $1,610,000 for grants to New York counties to support certified land banks