Bar Association receives $1.48M under Bank of America mortgage settlement

BOSTON, Mass.—Eric D. Green, independent monitor of Bank of America’s Aug. 20, 2014, mortgage settlement with the U.S. Department of Justice and six states, announced Friday the distribution of $1,478,989 to the CNMI Bar Association, as mandated under the settlement, to provide legal assistance in foreclosure prevention and community redevelopment.

The bar association, headquartered on Saipan, is among 56 state-based legal-assistance organizations receiving funds under the settlement, which settled legal claims arising from mortgage-related activities by Bank of America and its subsidiaries. A distribution was made earlier to NeighborWorks America, a national, congressionally-chartered nonprofit organization that provides training and support for community-based redevelopment programs in the United States and Puerto Rico.

The distributions—totaling more than $490 million nationwide—were triggered last December by President Obama’s signing into law an act extending federal tax relief through 2016 to homeowners who otherwise would have incurred income-tax liability from mortgage debt forgiveness they received under consumer-relief provisions of the settlement. The money being distributed to the nonprofit organizations is from a fund established under the settlement to provide federal tax assistance to homeowners in case Congress failed to extend the tax-relief legislation.

With the signing of the legislation, the tax-relief fund became surplus. Under the terms of the settlement, Green is required to distribute 75 percent ($367.62 million) of the fund to eligible legal-assistance organizations in each state and the remaining 25 percent ($122.54 million) to NeighborWorks America.

The settlement provides that in each state, the District of Columbia, and each U.S. territory or possession, to the extent practicable, the legal-assistance organizations are to receive a distribution of $200,000 from the fund, with the remainder to be allocated among the states and other eligible jurisdictions based on poverty population data collected by the U.S. Census Bureau, in the manner used for funding distribution by the Legal Services Corp. As specified in the settlement, these recipients are state-based Interest on Lawyers Trust Account organizations or other state bar association affiliated intermediaries that fund legal aid organizations in their jurisdictions.

Co-signatories to the settlement, besides the bank and the Department of Justice, were the attorneys general of the States of California, Delaware, Illinois, Maryland and New York, and the Commonwealth of Kentucky.

Green, a Boston-based professional mediator and retired Boston University law professor, was hired as independent monitor to oversee the tax-relief fund and the bank’s compliance with its ongoing consumer-relief obligations under the settlement.

A full list of recipient organizations and more information about the settlement is available at the monitor’s website: http://bankofamerica.mortgagesettlementmonitor.com. The monitor’s mailing address is: Monitor of the Bank of America Mortgage Settlement, P.O. Box 10134, Dublin, OH 43017-3134, and the e-mail address is info@mortgagesettlementmonitor.com. (BoA)

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