Goldman Sachs forgave nearly $71 million in mortgage debt over the last several months, as the company works to meet 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 Wednesday by Eric Green, who serves as independent monitor of the settlement, showed that since August 1, Goldman Sachs forgave the balances due on 649 first-lien mortgages, for total principal forgiveness of $70,826,023.
The average principal forgiveness was $109,131 per borrower.
The consumer relief efforts are part of the Goldman Sachs’ settlement with the Department of Justice; the New York, California 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 and provide $1.8 billion in consumer relief.
In this latest report, Green’s office said that Goldman Sachs is now approaching the 50% mark in its consumer relief obligation.
With new credit earned through recent loan-forgiveness activities, Goldman Sachs now has satisfied 46% of its $1.8 billion consumer relief obligation, Green’s office said Wednesday.
Due to credit calculations and multipliers specified in the settlement agreements, Goldman Sachs claimed reportable credit of $96,383,064 for the nearly $71 million in mortgage forgiveness.
According to Green’s office, the modified mortgages were spread across 43 states and the District of Columbia, with 26% of the credit located in the settling states of New York, Illinois, and California.
Additionally, 37% of the credit is for forgiveness of loans located in Hardest Hit Areas, which are census tracts identified by the Department of Housing and Urban Development as containing large concentrations of distressed properties and foreclosure activities.
In total, Goldman Sachs has now received conditionally validated credit of $820,900,779 in the settlement, Green’s office said.
“Goldman Sachs continues to make progress,” Green said. “Approximately 19 months after the settlement agreements were signed, Goldman Sachs appears to be 46% of the way toward completing its consumer-relief obligations.”