FOR IMMEDIATE RELEASE : Thursday, December 13, 2012
CONTACT: Sara Rabern (605)773-3215
Attorney General Marty Jackley Announces the Recipients of the National Mortgage Fraud Settlement Fund Distribution
PIERRE, S.D.- Attorney General Marty Jackley announced today that the Mortgage Fraud Settlement Task Force has completed its review of applications and has made a final determination as to how the approximately three million dollars in mortgage fraud settlement dollars obtained by the Attorney General’s Office will be distributed.
Distribution of funds:
South Dakota Home Builders Association $1,000,000
• Purpose of revolving low interest loan fund to fund spec homes for low income applicants
GROW South Dakota $500,000
• Purpose to create loan products that will assist veterans and other low to moderate income South Dakota residents’ with home purchase and modification financing.
South Dakota Housing Development Authority $372,364
• Purpose of funding homebuyer education programs
Ellsworth Development Authority $270,778
• Purpose of developing residential lots and rental units for low income residents in the housing Development Freedom Estates, outside of Ellsworth Air Force Base
Homes Are Possible Inc. $200,000
• Purpose of a housing down payment and closing cost assistance
East River Legal Services $144,341
• Purpose of funding legal costs for low income applicants
Dakota Plains Legal Services $144,341
• Purpose of funding legal costs for low income applicants
Luther Social Services of South Dakota $120,000
• Purpose of credit counseling services
Beadle and Spink Enterprise Community $50,000
• Purpose of assisting with collateral expenses for four Governor homes in Beadle and Spink Counties
Teton Coalition $ 40,000
• Purpose of homebuyer education
Consumer Credit Counseling of the Black Hills $ 30,000
• Purpose of housing and foreclosure counseling
James Valley Housing Inc. $ 15,000
• Purpose of housing, education, counseling and closing cost loan assistance
“Task Force members should be commended for their work to ensure that these settlement funds are distributed in a manner that benefits South Dakota as a whole,” said Jackley. “The settlement funds will go a long way to assist our veterans and low income families with homeownership opportunities here in South Dakota.”
Members of the Task Force included: Curt Everson, President, South Dakota Bankers Association, Jason Frerichs, South Dakota Senate Minority Leader, Bernie Hunhoff, South Dakota House Minority Leader, David Lust, South Dakota House Majority Leader, Kim Olson, Policy Advisor, Representative of the Governor and Russell Olson, South Dakota Senate Majority Leader.
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 $7,790,984 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 in the amount of $1,265,421.
• The value of refinanced loans to South Dakota underwater borrowers would be an estimated $2,490,214.
• The state received a direct payment of $2,886,824.00, which is the amount designated for distribution by the Task Force.
If you have any additional questions contact Sara Rabern at (605)773-3215.
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