By Ben Lane, Housing Wire, September 29, 2017
Morgan Stanley is nearing the end of its $400 million consumer relief obligation that is part of the $3.2 billion mortgage bond settlement it reached last year.
The settlement covers Morgan Stanley’s “deceptive” mortgage bond practices in the run-up to the financial crisis and requires the company to provide $400 million in consumer relief for New York residents affected by the company’s alleged actions.
A new report from Eric Green, the independent monitor of the consumer-relief portion of the settlement, shows that Morgan Stanley’s consumer relief total now exceeds $373 million, or 93% of its total obligation.
In the last few months, Green’s office credited Morgan Stanley with $34.43 million in credit for recent consumer-relief activities, which pushed the company’s total consumer relief tally to $373,353,040.
According to Green’s office, Morgan Stanley received credit for the following actions:
- $29,037,500 for a grant to help stabilize New York City neighborhoods by assisting in the acquisition and remediation of non-performing loans on abandoned properties
- $4,312,500 for a grant supporting critical-need housing and associated services in Buffalo, New York
- $1,081,713 for grants to 15 municipalities or eligible agencies in New York State to support housing quality improvement and enforcement programs
“Nineteen months after the settlement agreement was signed, Morgan Stanley has nearly completed its obligation to provide relief to New York communities in need of housing assistance,” Green said in the report.
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