Morgan Stanley has completed $10.5 million in consumer relief, according to the independent monitor of the
It received the credit for the forgiveness of debt on 19 first-lien mortgage loans, monitor Eric Green said. Altogether, the credited relief represents 3% of Morgan Stanley's $400 million in consumer relief obligations as part of the $550 million settlement reached in February.
Eleven of the 19 mortgage loans were located in "hardest hit areas" as identified by the Department of Housing and Urban Development, and 18 were underwater on their loans before the forgiveness.
Green called the initial batch of relief a "test drive" for him and his team of legal, finance and accounting professionals. He also noted that the initial review showed that Morgan Stanley is "employing a logical and appropriate approach to seeking credit for its consumer-relief efforts."
"In the coming months, we should get a clearer picture of how quickly Morgan Stanley is delivering on its consumer-relief obligations and how much of what kind of relief is being delivered," said Green, a professional mediator and retired Boston University law professor, in a news release.
The settlement between New York State and Morgan Stanley was reached to resolve claims against the bank that it or its affiliates violated state law in its activities involving mortgage-backed securities.
