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Monitor Report: Goldman Sachs Completes 94.7% of $1.8B Target for Consumer-Relief Under Mortgage Settlements

·3 mins read

BOSTON, Oct. 9, 2020 /PRNewswire/ -- Goldman Sachs has successfully completed 94.7% of the consumer relief required of it under its 2016 settlements with the U.S. Department of Justice and three states according to the October 9 report by the Independent Monitor of the settlements, Professor Eric D. Green. According to Professor Green, as of September 30, 2020, Goldman Sachs is continuing to make steady progress towards fulfilling its obligation to provide $1.8 billion in consumer relief under those settlements.

It is the Monitor's fifteenth report since the April 11, 2016 settlement.

According to Professor Green, in the 22 weeks covered by the most recent report, through September 30, 2020, Goldman Sachs forgave the balances due on 799 first lien mortgages, representing total principal forgiveness of $78,606,755 and an average first lien principal forgiveness of $98,381. Total reportable credits amounted to $77,298,067 after the application of appropriate crediting calculations and multipliers. The modified mortgages are spread across 42 states and the District of Columbia, with 42% of the credit located in the three settling states and 42% of the credit in Hardest-Hit Areas (census tracts identified by the U.S. Department of Housing and Urban Development as containing large concentrations of distressed properties and foreclosure activities).

Goldman Sachs also forgave amounts due and previously deferred on 18 first lien mortgages for total forgiveness of $739,923, an average forgiveness of $41,107, and total reportable credit of $788,261 after the application of appropriate crediting calculations and multipliers. The loans are spread across 9 states, with 8% of the credit in the three Settling States and 33% of the credit in Hardest-Hit Areas.

Goldman Sachs also sought credit for the extinguishment of 143 second lien loans with $8,873,270 in total principal forgiven with an average extinguishment of $62,051 and total reportable credit of $3,629,896 after the application of appropriate crediting calculations and multipliers. These loans are located in 32 states and the District of Columbia, with 36% of the associated credit in the three Settling States and 52% in Hardest-Hit Areas.

The consumer relief provided in the most recent period brings the total relief provided by Goldman Sachs to $1,704,847,073 the Monitor said in the report.

"Thus, four and a half years after the Settlement Agreements were signed, Goldman Sachs appears to be almost 95% of the way toward completing its Consumer Relief obligations," Professor Green said in the report, which again noted data suggesting Goldman Sachs has now exceeded the minimum amount of credit that must be earned in each of the three settling states of California, Illinois and New York.

Goldman Sachs' two settlement agreements resolved potential claims regarding the marketing, structuring, arrangement, underwriting, issuance and sale of mortgage-based securities. Besides the Department of Justice, California, Illinois and New York, Goldman Sachs reached settlements with the National Credit Union Administration Board and the Federal Home Loan Banks of Chicago and Des Moines. Under the settlements, Goldman Sachs agreed to provide a total of $5.06 billion, including consumer-relief valued at $1.8 billion to be distributed by the end of January 2021.

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 goldmansachsmonitor@mortgagesettlementmonitor.com.

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SOURCE Eric D. Green