NEW YORK—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, Housingwire reported.
The consumer relief efforts are part of the Goldman Sachs’ settlement with NCUA—to cover losses from several failed corporate credit unions—the Department of Justice; the New York, California and Illinois Attorneys General; 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, Housingwire said.
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, according to Housingwire.
“Goldman Sachs continues to make progress,” said Green, according to Housingwire. “Approximately 19 months after the settlement agreements were signed, Goldman Sachs appears to be 46% of the way toward completing its consumer-relief obligations.”