State Attorney General Eric Schneiderman and Gov. Andrew Cuomo have reached an accord on the first $163 million of the state’s $613 million share of a settlement with JP Morgan Chase, with half going to the state’s general fund and the other half distributed through Schneiderman’s office.
Cuomo and Schneiderman were at odds over how the money would be distributed, with Cuomo pushing for it to go into the state’s coffers and Schneiderman looking to keep control of it.
Under terms of the deal, about $81.5 million will go to the state’s general fund, but will be earmarked for housing programs. The other $81.5 million will go toward anti-foreclosure programs administered by Schneiderman’s office.
Schneiderman spokesman Matt Mittenthal said the funds would be distributed in an “open and transparent way to help as many New York families as possible.”
“In addition to allocating funds to proven programs that have helped thousands of New Yorkers recover from the housing collapse and groundbreaking initiatives that will bring systemic reforms to mortgage markets, Attorney General Schneiderman will allocate $81.5 million of the $613 million recovered from JPMorgan Chase to State programs that provide relief to homeowners,” Schneiderman spokesman Matt Mittenthal said in a statement.
The JPMorgan Chase deal last November settled investigations into the bank’s mortgage-lending practices in the years leading to the 2008 economic meltdown.
The total settlement was about $13 million, with about $613 million headed for New York. Schneiderman served as the co-chair of a state-federal panel that helped negotiate the deal.
UPDATE: Cuomo spokesman Rich Azzopardi weighs in:
“This agreement on the first year of funding for the JP Morgan settlement will provide help those who have been hurt most by the housing crisis, and make certain that this money will be dispersed with maximum accountability and oversight,” Azzopardi said in a statement. “It further ensures that the transparent disbursement process that has been followed by past Attorneys General remains in place.”
(AP file photo by Mike Groll)