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Goldman Sachs nearing $650 million in consumer relief in $5 billion settlement

Passes one-third mark in $1.8 billion consumer relief obligation

Goldman Sachs recently passed the one-third mark in its $1.8 billion consumer relief obligation that is part of the company’s $5 billion settlement reached in April 2016 over toxic mortgage bonds, the settlement’s monitor said in a new report.

The report, published this week by Eric Green, who serves as independent monitor of the settlement, showed that Goldman Sachs reached $644.3 million in consumer relief for its settlement with the Department of Justice; the New York and Illinois Attorneys General; the National Credit Union Administrationacting as conservator for several failed credit unions; and the Federal Home Loan Banks of Chicago and Seattle.

In addition to the $2.385 billion civil monetary penalty to the federal government, and the $875 million in cash payments to resolve claims by other federal entities and state claims, Goldman Sachs is also required to provide $1.8 billion in consumer relief.

According to the terms of the settlement, the consumer relief can come in the form of loan modifications, including loan forgiveness and forbearance, to distressed and underwater homeowners throughout the country, as well as financing for affordable rental and for-sale housing throughout the country.

According to Green’s latest report, Goldman Sachs received credit for approximately $544 million in consumer relief over the last few months. Back in February, Green’s office reported that Goldman Sachs had passed $100 million in consumer relief.

Green’s office said that in the recent period, Goldman Sachs received conditional approval of consumer-relief credit of $240 million for donations to facilitate the construction, rehabilitation or preservation of affordable low-income rental or for-sale housing in seven states.

Green’s office also said that Goldman Sachs received an additional credit for $10,601,593 for extinguishment or forgiveness of unsecured debt.

Additionally, Goldman Sachs also received conditional approval for credit totaling $280 million for grants to certified New York land banks and land trusts, to support housing-quality improvement and enforcement programs in New York and for debt restructuring for New York homeowners at risk of foreclosure, Green’s office said.

In total, Goldman Sachs has now received conditional approval for $644,300,519 worth of consumer-relief credit, or 36% of its $1.8 billion obligation.

“I am pleased to be able to confirm that Goldman Sachs continues to make steady progress toward meeting its obligation,” Green said in a statement.

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