Nearly 350 Kentuckians and three state organizations have received a combined $18 million from the 2014 Bank of America settlement that involved mortgage loan practices during the 2008 financial crisis.
Attorney General Andy Beshear made the announcement Monday in a news release. The impact of the settlement for Kentuckians is based on the most recent compliance report by the 2014 Bank of America Mortgage Settlement Monitor released Nov. 30.
The compliance report said that 88 Kentuckians received debt forgiveness totaling $6.1 million; 56 Kentuckians obtained loan modifications totaling $1.5 million; 10 Kentuckians had their second-lien mortgage automatically extinguished, and another 10 had their loan principal extinguished.
The news release stated that 125 Kentuckians received forgiveness of their outstanding debt related to a junior lien or unsecured debt totaling $3.8 million, and 66 Kentuckians located in the hardest hit areas who lost a primary residence due to foreclosure or short sale or who were first time low-income borrowers were given new loans.
In addition, The Kentucky Bar Association’s Interest on Lawyer Trust Accounts — which raises money for charitable purposes such as the provision of civil legal services to indigent individuals — received $6 million. The Federation of Appalachian Housing Enterprises of Berea received $250,000; and Metro Louisville Habitat for Humanity received $99,000 to benefit Kentuckians affected by the mortgage crisis.
Kentucky Retirement Systems received $23 million in August 2014 from the settlement with Bank of America for defrauding the state’s pension system when the company sold high-risk loans.