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Monitor Report: Goldman Sachs Completes 81% of $1.8B Target for Consumer-Relief Under Mortgage Settlements

BOSTON, Sept. 6, 2019 /PRNewswire/ -- Goldman Sachs has successfully completed 81% of the consumer relief required of it under its 2016 settlements with the U.S. Department of Justice and three states as of August 8, 2019, according to the September 6 report by the Independent Monitor of the settlements, Professor Eric D. Green.  According to Professor Green, 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 twelfth report since the April 11, 2016 settlement.

According to Professor Green, in the 16 weeks covered by the most recent report, through August 8, Goldman Sachs forgave the balances due on 837 first lien mortgages, representing total principal forgiveness of $82,093,144 and an average first lien principal forgiveness of $98,080. Total reportable credits amounted to $82,534,578 after the application of appropriate crediting calculations and multipliers. Goldman Sachs also forgave amounts due and previously deferred on 28 first-lien mortgages, for a total forgiveness of $3,213,057, an average of $114,752, and a total reportable credit of $3,447,691 after the application of appropriate crediting calculations and multipliers.

Combined, the two items resulted in total reportable consumer-relief credit of $85,982,269 after the application of crediting calculations and multipliers specified in the settlement agreements.

The modified mortgages are spread across 43 states and the District of Columbia, with 25% of them in the three settling states and 47% 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).

The consumer relief provided in the most recent period brings the total relief provided by Goldman Sachs to $1,466,019,035, the Monitor said in the report.

"Thus, a little more than three years and four months after the Settlement Agreements were signed, Goldman Sachs appears to be approximately 81% toward completing its Consumer Relief obligations," Professor Green said in the report. As detailed in the Monitor's May report, data suggests Goldman Sachs has exceeded the minimum amount of credit that must be earned in each of the three settling states – 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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