Goldman Sachs recently moved past the 40% 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 $724.5 million in consumer relief for its settlement with the Department of Justice; the New York and Illinois Attorneys General; the National Credit Union Administration, acting as conservator for several failed credit unions; and the Federal Home Loan Banks of Chicago and Seattle.
In addition to being required to pay a $2.385 billion civil monetary penalty to the federal government, Goldman Sachs must also provide $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 Green’s latest report, Goldman Sachs is now approaching the halfway mark in its consumer relief obligation.
Per 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.
During the period since Green’s last report, which was issued on May 1, 2017, Goldman Sachs forgave nearly $90 million in principal to a number of consumers.
According to Green’s office, the bank received conditional credit of $80.2 million for these activities.
Specifically, Goldman Sachs received credit for forgiveness of the balances due on 343 first-lien mortgages, for total principal forgiveness of $38,255,616, or an average principal forgiveness of $111,532 per loan.
The total reportable credit for that principal forgiveness was $57,454,373, after the application of appropriate crediting calculations and multipliers, Green’s office said.
The modified mortgages are spread across 38 states and the District of Columbia, with 32% of the credit located in the settling states of New York, Illinois, and California, Green’s office added.
Additionally, Goldman Sachs also received credit in for extinguishing 625 second-lien loans. The total principal forgiven on these loans was $51,050,951, with an average principal forgiveness of $81,682, and total reportable credit of $22,762,823 after the application of appropriate crediting calculations and multipliers.
In total, Goldman Sachs has now received $724.5 million in consumer relief credit, or 40 percent of the required $1.8 billion.
“I am pleased to be able to report that Goldman Sachs has taken another major step toward meeting its obligation,” Green said in a statement.