Morgan Stanley credited with $30M of consumer relief

Register now

Morgan Stanley received credit for $30 million of consumer relief, completing 85% of the obligations required by its February 2016 settlement with New York State.

The company was required to provide $400 million of consumer relief; as of June 30, it provided $339 million.

In the latest report issued by the settlement monitor, Eric Green, Morgan Stanley received credit of $29 million for one grant to assist New York local government units and eligible organizations in consumer-relief efforts, including the acquisition of nonperforming loans. The grant brought Morgan Stanley's total for providing financing for the acquisition and remediation of nonperforming loans to $37.4 million.

There was $746,646 of credit given for two grants to New York municipalities and eligible agencies to support housing quality improvement and enforcement programs.

The relief was part of a $3.2 billion settlement that ended a joint federal-state investigation into Morgan Stanley's role in the origination and securitization of subprime mortgage loans.

For reprint and licensing requests for this article, click here.
Enforcement RMBS Mortgage defaults Subprime lending Morgan Stanley