By Francis Monfort, Mortgage Professional America Magazine, October 3, 2017
Morgan Stanley has received conditional approval for approximately $34.4 million of credit for activities performed in recent months, according to Eric Green, the independent monitor of the settlement agreement.
With the update, the company is now near completion of its consumer-relief obligations under the settlement it entered in Feb. 11, 2016, with the State of New York. The company now has about $373.4 million in total amount of conditionally validated cumulative credit, representing 93% of the $400 million of credit consumer relief required under the settlement. The agreement relates to claims that the company violated state law on residential mortgage-backed securities.
“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.
Based on the company’s Aug. 1 credit submission, it has claimed credit for activities through that date including about $29 million for a grant to assist in the acquisition and remediation of non-performing loans on abandoned properties to help stabilize New York City neighborhoods; approximately $4.3 million for a grant to support critical-need housing and associated services in Buffalo, N.Y.; and about $1.1 million for grants to 15 municipalities or eligible agencies in New York State to support housing quality improvement and enforcement programs.
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