The Indiana Bar Foundation has received $7.13 million as part of a record federal mortgage settlement with Bank of America, attorneys involved in the case announced Thursday.
Bank of America agreed in August 2014 to pay $16.65 billion to settle a high-profile federal probe into its mortgage practices in the years leading up to the 2008 financial crisis.
It reached a deal with the U.S. Department of Justice and other federal agencies, along with six states, to resolve multiple investigations into how the company packaged and sold residential mortgage-backed securities.
As part of the settlement, some of the funds are being directed to Interest on Lawyer Trust Accounts across the country.
The IBF will only be able to use its settlement funds for programs covering mortgage foreclosures and community development, foundation leaders told The Indiana Lawyer earlier this month.
The IBA has been expecting the settlement money since March.
The payment marks the second check Indiana’s IOLTA program has received from the Bank of America settlement. It earlier received $584,646.
“This is certainly good news, no doubt about it,” Chuck Dunlap, executive director of the IBF, told The Indiana Lawyer. “The challenge is knowing, now that we have this great opportunity, how to really (use it to) have a great impact.”
IBF's IOLTA program was created in 1997 as a mechanism to enable low-income Hoosiers to have access to the civil justice system.