Goldman Sachs Completes $ 1.8 Billion Consumer Assistance Mandate Under 2016 Mortgage Settlements

BOSTON, July 1, 2021 / PRNewswire / – Goldman Sachs successfully completed its $ 1.8 billion the consumer’s obligation to help by virtue of its April 11, 2016 settlement agreements with the US Department of Justice and three states, according to Independent Colonial Observer Professor Eric D. Green.

In his sixteenth and final report, Professor Green said Goldman Sachs earned more $ 1.8 billion in credit after providing more than $ 1.52 billion of Consumer Relief credited under the Settlement Agreement with the United States Department of Justice and the States of California and Illinois (the “Comprehensive Settlement Agreement”) and $ 280 million consumer assistance credited under the related settlement agreement with the New York State (the “New York Settlement Agreement”), which supported initiatives for homeowners at risk of foreclosure.

“It has directly and materially helped homeowners who were struggling to afford to stay in their homes,” Professor Green said. “I am happy that the professionals on my team and I have been able to help ensure that homeowners and communities take full advantage of the $ 1.8 billion in helping consumers. ”

Some 39% of the credit under the Comprehensive Settlement Agreement was obtained from Consumer Relief in the three host states. Professor Green noted in the report that the data indicated that changes to the principal reductions of the first privilege – the bulk of consumer relief – resulted in an average principal reduction of 27% and a reduction in the ratio. average loan-value of 137.4% to 92.1%.

The final report covers October 1, 2020, through June 16, 2021, ie eight months and 15 days without the end date. During this period, Goldman Sachs canceled the balances owed on 560 first mortgages, representing the total cancellation of the principal of $ 61,710,171 and an average discount of the principal of the first lien of $ 110,197. The total credits to be declared amounted to $ 62,872,653 after applying appropriate credit calculations and multipliers. Modified mortgages are spread across 40 states, the District of Colombia, and Porto Rico, with 46% of credit located in the three host states and 38% of credit in the most affected areas.

Goldman Sachs also remitted amounts owed and previously deferred on 17 first mortgages for a total remission of $ 861,969, an average forgiveness of $ 50,704, and a total reportable credit of $ 927,390 after applying appropriate credit calculations and multipliers. Loans are spread over 8 states, with 27% of credit in the three host states and 44% of credit in the worst affected areas.

Goldman Sachs has deferred repayment of principal owed on 37 mortgages. The total deferred principal repayments were $ 2,280,865, with an average carryover of $ 61,645 and total reportable credit of $ 988,821 after applying appropriate credit calculations and multipliers. Loans are located in 12 states, with 59% of credit in colonized states and 68% in hardest hit areas.

Goldman Sachs requested extinguishment credit for 33 second-ranking loans with $ 1,888,067 in the total of the principal remitted, an average extinction of $ 57,214 and total reportable credit of $ 806,066 after applying appropriate credit calculations and multipliers. These loans are located in 19 states with 45% of the associated credit in the three colonizing states.

Finally, Goldman Sachs was credited with 35 actions involving the extinction or surrender of $ 1,754,044 in unsecured loans or in loans secured by junior privileges. These loans had an average extinction or forgiveness of $ 50,116 and total reportable credit of $ 636,459 after applying appropriate credit calculations and multipliers. Loans are located in 22 states, with 18% of credit in colonized states and 69% in hardest hit areas.

Goldman Sachs’ two settlement agreements resolved potential claims relating to the marketing, structuring, arrangement, underwriting, issuance and sale of mortgage-backed securities. In addition to the Ministry of Justice, California, Illinois and new York, Goldman Sachs has entered into agreements with the National Credit Union Administration Board and the Federal Home Loan Banks of Chicago and monks. As part of the settlements, Goldman Sachs has agreed to provide a total of $ 5.06 billion, including consumer relief rated at $ 1.8 billion to be distributed by the end of January 2021.

Professor Green, professional and retired mediator Boston university Professor of Law, has been appointed by the settling parties as an independent monitor to determine whether Goldman Sachs is fulfilling its consumer protection obligations. He assembled a team of finance, accounting and legal professionals to assist him in this task.

In his final report, Professor Green noted that this report “closes the book” on his oversight of three of the major banking settlements that arose out of the 2008 financial crisis. These procedures took thirteen years, during which billions of dollars in aid were provided to consumers injured by the collapse of the housing market and the mortgage-backed securities catastrophe of the past decade and a half. The costs of this disaster were enormous and, despite these regulations, are still The Observer appreciates the cooperation and efforts of the many people and organizations charged with providing this assistance, but sincerely hopes that the lessons learned on the behaviors that created the situation in the first place will not be forgotten so that in the future similar calamities can be avoided in the first place. “

The report is available on the Monitor’s website at The website provides further details of the settlement, as well as contact details for Goldman Sachs, Department of Justice, Attorneys General of California, Illinois and new York, and agencies that provide legal or tax advice to consumers.

The monitor’s postal address is:

Goldman Sachs Mortgage Settlement Controller, PO Box 10310, Dublin, Ohio 43017-5910, and the email address is [email protected].

SOURCE monitor: Eric D. Green

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