Morgan Stanley handed out nearly $200 million in consumer relief over the last few months, pushing the company past the 75% mark in 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 required the company to provide $400 million in consumer relief for New York residents affected by Morgan Stanley’s alleged actions, set to be distributed by the end of September 2019.
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 is now north of $300 million.
According to Green’s office, Morgan Stanley received conditional approval for $198,430,440 in credit for consumer relief over the last few months.
Combined with the $10.5 million of conditional credit approved in August 2016, and the $110.7 million in credit approved in December, Morgan Stanley’s total credit conditionally validated is $309.1 million, 77% of its total obligation.
According to Green’s office, Morgan Stanley achieved the $198.43 million in consumer relief credit by providing 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 housing developments.
The credit breaks down as such:
- $28,458,763 for certified land banks
- $28,229,506 for housing quality improvement and enforcement programs
- $141,742,171 for affordable rental housing
“With these actions, Morgan Stanley has continued to provide consumer relief to New York communities in need of housing assistance,” Green said.
