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Monday, October 14, 2019

S.D. AG awards funds from nationwide mortgage fraud settlement

By Bryan Cohen | Apr 24, 2013

PIERRE, S.D. (Legal Newsline) -- South Dakota Attorney General Marty Jackley announced Tuesday that the South Dakota Housing Development Authority will receive more than $300,000 of the state's proceeds from a nationwide settlement with Lender Processing Services Inc.

Of the $120 million obtained by Jackley, 44 other attorneys general and the District of Columbia in a December settlement with LPS, South Dakota received $344,000.

The South Dakota Housing Development Authority administers the South Dakota Housing Opportunity Fund, a fund meant to preserve and expand safe, affordable and sustainable housing for low and moderate income families.

"Mortgage practices and abuses have made it difficult for too many homeowners," Jackley said in a statement. "It is fitting that the litigation has returned some of the losses and has further made it possible for us to put home buying opportunities back into the hands of those who need them most, including veterans and low income families."

Senate Bill 235 created the housing opportunity fund, which will be used to fund affordable housing projects and to construct or rehabilitate existing housing structures for the work force, homeless, low income or the disabled.

The settlement with LPS resolved allegations that the company, which provides technological support to banks and mortgage loan services, robo-signed documents and engaged in other improper conduct when servicing default mortgage loans.

The LPS settlement was an offshoot from the inquiry into fraudulent mortgage practice that resulted in a $25 billion nationwide mortgage settlement agreement with the five largest mortgage service providers in the nation.

South Dakota received $7,790,984 in direct relief to homeowners and a direct payment of $2,886,824 to distribute to housing relief projects from the settlement.

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