FOR IMMEDIATE RELEASE : Tuesday, August 28, 2012
CONTACT: Sara Rabern, (605) 773-3215
Attorney General Marty Jackley Announces Deadline for Mortgage Settlement Proposals
PIERRE, S.D - Attorney General Marty Jackley is reminding business and governmental agencies interested in submitting written proposals for the Mortgage Settlement Task Force to do so soon. The deadline for application submittal is set for September 30, 2012.
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 or a total of $1,265,421.
• 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. The deadline to submit applications to the Task Force is September 30, 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.