General Conway Announces $25 Billion Mortgage Foreclosure Settlement
Press Release Date:
Thursday, February 09, 2012
Shelley Catharine Johnson
Deputy Communications Director
Attorney General Jack Conway today announced that Kentucky will participate in the national foreclosure settlement. The $25 billion settlement with five of the nation's largest banks provides relief to consumers who were foreclosed upon, principal write-downs and refinancing to homeowners who hold mortgages that exceed the current value of their home, and payments to states for ongoing consumer protection programs.
The settlement also preserves the rights of states to pursue criminal and civil actions against the banks. Attorney General Conway was one of the state Attorneys General who refused to sign a settlement unless those provisions were included.
"Our efforts made a difference, and I will use a significant portion of the money that Kentucky receives from the banks to continue going after them on behalf of Kentucky homeowners," General Conway said. "In fact, today I subpoenaed MERS (Mortgage Electronic Registration System Inc.), which I believe may have circumvented Kentucky law by failing to properly record mortgage assignments and pay filing fees with county clerks throughout the Commonwealth."
Of the $25 billion settlement, Kentucky will receive $58.8 million.