New Mexico to receive $ 24 million in mortgage crisis settlement

SANTA FE, NM (AP) – New Mexico’s public pension and investment funds to receive $ 24 million from several large financial institutions to resolve lawsuit over mortgage-backed securities and the financial crisis there is more than ten years, state prosecutors said.

New Mexico Attorney General Hector Balderas announced the deal with seven financial institutions on Monday, 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 complaints were dismissed without acknowledgment of liability.

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

The entire settlement is $ 32.5 million. Outside plaintiffs who first sued 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 State.

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

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

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