BOSTON, May 1, 2017 /PRNewswire/ -- Goldman Sachs is more than one-third of the way towards meeting the $1.8-billion consumer-relief obligation under its April 11, 2016, mortgage-related settlement agreements with the U.S. Department of Justice and three states, Eric D. Green said today in his third report as independent Monitor of the consumer-relief portions of the agreements.
The report details consumer-relief actions that Goldman Sachs took, and that Professor Green and his team of professionals tested, during the period since the Monitor's previous report on February 1, 2017. It also updates the bank's cumulative progress under the settlement agreements.
In the most 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. The Monitor's team also validated $10,601,593 of credit for extinguishment or forgiveness of unsecured debt.
Goldman Sachs also received conditional approval for credit totaling $280 million for grants to certified New York State 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.
The April 11, 2016, agreements settled potential and filed legal claims against Goldman Sachs regarding the marketing, structuring, arrangement, underwriting, issuance and sale of mortgage-based securities. Besides Goldman Sachs and the Department of Justice, the settling parties were California, Illinois, New York, the National Credit Union Administration Board and the Federal Home Loan Banks of Chicago and Des Moines. Goldman Sachs agreed to provide a total of $5.06 billion under the agreements, including consumer relief valued at $1.8 billion, to be distributed by the end of January 2021.
Together with credit from earlier periods, Goldman Sachs has received conditional approval of a cumulative $644,300,519 worth of consumer-relief credit, or 36 percent of its $1.8-billion target.
"I am pleased to be able to confirm that Goldman Sachs continues to make steady progress toward meeting its obligation," Professor Green said.
Professor Green, a professional mediator and retired Boston University law professor, was named by the settling parties as independent Monitor with responsibility for determining whether Goldman Sachs fulfills its consumer-relief obligations. He has assembled a team of finance, accounting and legal professionals to assist in the task.
The report is available at the Monitor's website at: http://goldmansachs.mortgagesettlementmonitor.com. The website provides further details about the settlement, plus contact information for Goldman Sachs, the Department of Justice, the Attorneys General of California, Illinois and New York, and agencies that provide legal or tax advice to consumers.
The Monitor's mailing address is: Monitor of the Goldman Sachs Mortgage Settlement, P.O. Box 10310, Dublin, OH 43017-5910, and the e-mail address is email@example.com.
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