Morgan Stanley has completed 77 percent of its consumer relief obligations under its settlement with the State of New York, after receiving conditional approval of nearly $200 million in credit for a number of recent relief-related activities. The news was announced by Eric D. Green, Independent Monitor of the Morgan Stanley Mortgage Settlement on Monday.
According to Green, Morgan Stanley’s recent consumer-relief activities included 14 grants to counties and municipalities to support certified land banks, 75 grants to municipalities and eligible agencies to support housing quality improvement and enforcement programs, and four actions to fund critical-need rental housing developments.
These activities amounted to more than $198 million, which included $28 million for certified land banks, $28 million for housing quality improvement and enforcement programs, and $141 million for rental housing units.
With the newly approved $200 million, the total amount of Morgan Stanley’s cumulative credit is now at $309.1 million—77 percent of the $400 million it agreed to in its February 2016 case with New York State. The agreement settled claims that the organization had violated state law in its handlings of residential mortgage-backed securities (RMBS.)
“With these actions,” Green said, “Morgan Stanley has continued to provide consumer relief to New York communities in need of housing assistance.”
The total settlement agreement was $3.2 billion--$550 million of which was to be paid to New York State. The remaining $400 million must be paid in consumer relief by the end of September 2019.
In August, the organization began fulfilling its relief obligations by settling debt owed on 19 first-lien mortgage loans totaling $10.4 million in reportable credit. This move represented less than 3 percent of Morgan Stanley’s total obligation.
To view the full report, visit MorganStanley.MortgageSettlementMonitor.com. This marks Green’s third report on the bank’s consumer-relief activities. Green is a professional mediator and retired law professor from Boston University.