New Mexico recoups $24 million in mortgage crisis settlement

SANTA FE — New Mexico’s public pension and investment funds will receive $24 million from several large financial institutions to resolve a lawsuit over mortgage-backed securities and the financial crisis more than a decade ago, a report said. said state prosecutors.

New Mexico Attorney General Hector Balderas announced the settlement Monday with seven financial institutions, including Barclays Capital, Goldman Sachs and Merrill Lynch.

The settlement resolves allegations of inadequate disclosures about mortgage-backed securities that were purchased by state pension and investment funds. The claims were dismissed without admission of liability.

The New York Stock Exchange is open during regular business hours in the Financial District on Wednesday, October 13, 2021, in the Manhattan borough of New York.  New Mexico's public pension and investment funds will receive $24 million from several large financial institutions to resolve a lawsuit involving mortgage-backed securities and the financial crisis more than a decade ago, the New Mexico Attorney General Hector Balderas.

Payment is made to state investment accounts and public pension funds overseen by the Public Employees Retirement Association and the Education Retirement Board.

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The entire settlement is $32.5 million. Outside plaintiffs who first filed the lawsuit on behalf of New Mexico taxpayers will receive 25% of the settlement, or just over $8 million, under the provisions of the Taxpayer Fraud Act of New Mexico. the state.

The New Mexico Public Employees Retirement Association alone lost more than $4 billion in assets during the Great Recession, which was triggered in late 2007 by losses on subprime mortgages that rocked the US housing market.

Jerri Mares, spokesperson for the attorney general’s office, said the state is at the end of litigation over the mortgage crisis.

The agency continues to provide advocacy services to mortgage consumers, including informal dispute resolution services.

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