By Ben Lane, Housingwire, June 30, 2017
Morgan Stanley is nearly finished with 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 $338 million.
In the last few months, Green’s office credited Morgan Stanley with $29.78 million of credit for consumer-relief activities that the company performed.
That pushes Morgan Stanley’s amount of cumulative credit conditionally validated by Green’s office to $338,921,327, which is 85% of its $400 million requirement.
According to Green’s office, Morgan Stanley received the $29.78 million of consumer relief credit for the follow activities:
- $29,037,500, for one grant to assist New York local government units and eligible organizations in consumer-relief efforts, including the acquisition of non-performing loans
- $746,646 for two grants to New York municipalities and eligible agencies to support housing quality improvement and enforcement programs
“I am pleased to be able to confirm that Morgan Stanley continues to make steady progress toward meeting its obligation to provide consumer relief to New York communities in need of housing assistance,” Green said in the report.
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