Jackley Forms Mortgage Settlement Task Force & Seeks Proposals to Disburse Mortgage Settlement Funds

Tuesday, June 12, 2012

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PIERRE, S.D. – Attorney General Marty Jackley announces today the formation of a South Dakota Task Force to disburse approximately three million dollars in mortgage fraud settlement funds. The following have agreed to serve on the Task Force:

1. Curt Everson, President, South Dakota Bankers Association
2. Jason Frerichs, South Dakota Senate Minority Leader
3. Bernie Hunhoff, South Dakota House Minority Leader
4. David Lust, South Dakota House Majority Leader
5. Kim Olson, Policy Advisor, Representative of the Governor
6. Russell Olson, South Dakota Senate Majority Leader

“I would like to thank the individual Task Force members for their willingness to serve and better ensure that the significant settlement funds reach South Dakotans in the best manner possible,” said Attorney General Marty Jackley.

History

In February of 2012, South Dakota joined with other State Attorneys General in reaching a $25 billion federal-state agreement with the nation’s five largest mortgages service providers over nationwide mortgage practices. The proposed agreement provided an estimated $7,790,984 in direct relief to South Dakota homeowners and addresses future mortgage loan service practices. South Dakota’s share of the $7,923,594 settlement is broken down as follows:


• South Dakota borrowers will receive an estimated $1,148,525 in benefits from loan term modifications and other direct relief.
• South Dakota borrowers who lost their home to foreclosure from January 1, 2008 through December 31, 2011 and suffered servicing abuse would qualify for approximately $2,000 in cash payments to borrowers.
• The value of refinanced loans to South Dakota underwater borrowers would be an estimated $2,490,214.
• The state will receive a direct payment of $2,886,824.00.

The Mortgage Task Force will be distributing the State’s remaining share of the settlement funds.

Solicitation for Proposals to Disburse Settlement Funds

Attorney General Jackley on behalf of the Task Force is requesting that business and governmental entities submit written proposals for funding to Assistant Attorney General Jeff Tronvold, 1302 E. Highway 14, Suite 1, Pierre, SD 57501. Although there is no deadline to submit applications, the Task Force will begin considering submitted applications August 1, 2012.


The criteria for applications is and should include the following:

1. The application must be from a recognized registered business entity in South Dakota or governmental or quasi-governmental agency;
2. The applicant’s mission statement;
3. A detailed line item budget for the use of any requested said funds;
4. A short and concise statement of how the funds will be used to assist South Dakotans and consistent with the mortgage settlement requirement which is as follows:
Said payment shall be used by the Attorneys General for attorneys’ fees and other costs of investigation and litigation, or to be placed in, or applied to, the consumer protection enforcement fund, consumer education or litigation or local consumer aid or revolving fund, used to defray the costs of the inquiry leading hereto, or may be used to fund or assist in funding housing counselor programs, state and local foreclosure assistance personnel, state and local foreclosure mediation programs, legal assistant and funding for training and staffing of financial fraud or consumer protection enforcement efforts and civil penalties or for other uses permitted by state law, at the sole discretion of each Attorney General.
5. A designated representative’s contact information.

If you have any additional questions contact Sara Rabern at (605)773-3215.