New York to get chunk of record Bank of America settlement

State will receive $800M out of $16.5B total; payment to include $125M for affordable housing
August 21, 2014 02:20PM

New York will receive an $800 million chunk of a national $16.65 billion settlement with Bank of America, state Attorney General Eric Schneiderman announced today. 

The bank agreed to the payout following an investigation into its role in the sale of mortgage-backed securities leading up to the financial crisis. The Empire State will receive a payment of $300 million in cash and $500 million in the form of direct relief to consumers that includes mortgage modifications, new loans, donations to communities and financing for affordable rental housing.

“Today’s result is a major victory in the fight to hold those who caused the financial crisis accountable,” Schneiderman said in a statement.

As part of the settlement agreement, BofA acknowledged making “serious misrepresentations to the public,” according to Schneiderman’s statement. The bank also agreed to give a minimum of $20 million in donations of cash, vacant and abandoned properties to local governments and nonprofits. The nation’s second-largest bank will also provide $125 million toward affordable rental housing creation and preservation across New York State and $35 million to legal service providers for housing and community development groups. — Julie Strickland