Goldman Sachs has forgiven principal on 746 loans as part of two mortgage-related settlement agreements with the Department of Justice and three states, Eric Green noted in his ninth report as independent monitor of the consumer-relief portions of the agreements.

Goldman has been working to satisfy a $1.8-billion consumer-relief obligation under the agreements from April 11, 2016.

Since the last report was released on Aug. 1, 2018, Goldman Sachs forgave $78,678,617 in principal on 746 first-lien mortgages, for average principal forgiveness of $105,467 per loan, or $79,272,978. Goldman has now modified 10,671 mortgages, totaling $1,199,803,282 or 67 percent of the $1.8-billion target.

"I am pleased to be able to confirm that Goldman Sachs continues to make steady progress toward meeting its obligation to provide Consumer Relief valued at $1.8 billion," said Green.

The modified mortgages are spread across 42 states and the District of Columbia, with 32 percent of the credit located in the settling states of New York, Illinois, and California, and 47 percent of the credit located in hardest hit areas, or census tracts identified by the Department of Housing and Urban Development as containing large concentrations of distressed properties and foreclosure activities.

Goldman's two settlement agreements resolved potential claims regarding the marketing, structuring, arrangement, underwriting, issuance and sale of mortgage-based securities. Besides the Department of Justice, California, Illinois and New York, Goldman Sachs reached settlements with the National Credit Union Administration Board and the Federal Home Loan Banks of Chicago and Des Moines. Under the settlements, Goldman Sachs agreed to provide a total of $5.06 billion, including $1.8 billion of consumer relief to be distributed by year-end of January 2021.

Eric Green is a professional mediator and retired Boston University law professor, who was named by the settling parties as independent monitor with responsible for determining whether Goldman Sachs fulfills its consumer-relief obligations. He has assembled a team of finance, accounting and legal professionals to help perform that work.

Wells Fargo and Co. has named Courtney Smith Goodrich chief operating officer for the Enterprise Information Technology team. She joins from JP Morgan Chase and Co., where she was chief technology strategy and programs officer

Smith Goodrich will report to  Scott Dillon, chief technology officer. In her role, she will have oversight responsibility for enterprise technology strategy, process and operational enablement. She will drive the business of IT and have a keen focus on prioritizing enterprise delivery through highly effective coordination and enablement of day-to-day operations of the Enterprise team.

“At Wells Fargo, we are transforming how technology is managed and utilized across the enterprise to drive better results for our customers,” said Dillon. “Courtney’s track record of leadership and success will be a valuable addition as we continue to evolve our technology capabilities and build toward the future.”

Over her 25-year career at JP Morgan Chase, Smith Goodrich has held a number of senior leadership positions. Most recently, she led the strategy, technology program management and oversight for JP Morgan Chase’s Global Technology organization. In addition, she directed multi-year planning activities for all technology organizations, including setting the three-year technology vision and objectives. Previously, she served as COO for Global Technology; COO for Corporate Technology, IT Risk and Security Management; and Global Technology Resource Manager.

Smith Goodrich shared her professional expertise as a mentor and sponsor to other employees and served as co-chair for the Technology Diversity and Inclusion Committee at JP Morgan. In addition, she is a frequent speaker at industry and university forums providing insight based on experience gained working across multiple lines of business.

She will assume her Wells Fargo role from current COO Theresa Wilson who announced her retirement in June after 40 years at the company. The first to hold this role, Wilson led strategic enterprise technology initiatives driving the organization toward greater transparency and more streamlined core functions. She will help Smith Goodrich transition into her role before retiring at the end of the year.

“I am grateful for everything Theresa has contributed to building the organization we are today,” said Dillon. “We will miss her calm demeanor in the face of great change and passion for team member engagement and empowerment.”

Fannie Mae reported net interest income of $5.4 billion in the third-quarter derived primarily from guaranty fees on its $3.3 trillion portfolio.

In fact, more than 75 percent of Fannie Mae’s net interest income in the third quarter of 2018 was derived from the loans underlying Fannie Mae mortgage backed securities in consolidated trusts, which primarily generate income through guaranty fees. Fannie Mae’s net income of $4.0 billion for the third quarter of 2018 compares to net income of $4.5 billion for the second quarter of 2018.

Through Fannie’s single-family and multifamily business segments, the company provided $140 billion in the third quarter, or 726, 000 home purchases, re-financings and rental units.

Fannie Mae plans to pay, $4 billion in addition to the $171.8 billion in dividends it’s already paid, to the Department of Treasury by Dec. 31.

The single-family guaranty book of business continued to grow in the third quarter of 2018, with the average fee 43 basis points, unchanged with the previous quarter. Fannie provided $122 billion in funding for 360,000 home purchases and 160,000 refinancings. The single-family serious delinquency rate was 0.82% as of Sept. 30, 2018, compared with 1.24% as of Dec. 31, 2017, and 1.01% as of Sept. 30, 2017.

The single-family serious delinquency rate increased in the latter part of 2017 due to the impact of Hurricanes Harvey, Irma, and Maria in 2017, but has since resumed its prior downward trend because many delinquent borrowers in the affected areas have resolved their loan delinquencies by obtaining loan modifications or through resuming payments and becoming current on their loans.

The company’s single-family serious delinquency rate could take a hit in the short term as a result of the hurricanes that occurred late in the third and early in the fourth quarters, which caused some borrowers to miss their payments and could affect delinquency rates. But Fannie doesn’t anticipate their having a material impact on the company’s credit losses or loss reserves. The single- family serious delinquency rate will continue to decline, but at a more modest pace than in the past several years.

Multifamily net income was $549 million in the third quarter, compared with $504 million in the second quarter of 2018. The increase in net income in the third quarter was an increase in guaranty fee revenue as the multifamily guaranty book grew during the quarter, though the fee amounts declined.

New multifamily business volume was $18.2 billion in the third quarter of 2018, an increase from $14.5 billion in the second quarter of 2018. Multifamily new business volume totaled $44.0 billion for the first nine months of 2018. The multifamily serious delinquency rate decreased to 0.07%, as of September 30, from 0.11% as of Dec. 31, 2017.