Claiming it committed fraud, Kentucky Attorney General Jack Conway has filed a suit against a mortgage company.
Mortgage Electronic Registration Systems, or MERS, provides a marketplace for banks to trade mortgages and mortgage-backed securities.
Conway says it was set up by banks to avoid the fees that must be paid when mortgages are sold and to hide the true owners of those mortgages.
Conway's suit alleges MERS did not pay the proper fees in Kentucky. He's also suing under the Consumer Protection Act, because MERS foreclosed on many homes.
“About 300,000 mortgages in Kentucky are MERS mortgages right now," Conway said. "We are able to fine up to $2,000 per violation of the Kentucky Consumer Protection Act. We have that avenue of damages. And we also have the avenue to go after the recording fees that have been dodged as a result of this mortgage transfer scheme.”
New York, Delaware and Massachusetts have also filed suit against MERS.
Understanding that veterans have a higher unemployment rate than the population as a whole, Kentucky Agriculture Commissioner James Comer is launching two programs to help veterans find work. The Homegrown by Heroes initiative will place a label on food items produced by Kentucky veterans.
It's like the Kentucky Proud symbol, but includes a flag in the background and a veteran saluting.
"We've been getting calls from many other states and this is something I believe will be a nation model as a way to help market farm products by our military veterans," Comer remarked at a news conference Tuesday at the Boone National Guard Center in Frankfort..
Comer is launching another program called Kentucky Proud Jobs for Vets. The initiative will maintain a database of farmers and agri-businesses looking for workers. The database will be shared with military support groups like USA Cares. Comer says many people like hiring veterans because of their strong work ethic and service to the country.
The state Attorney General's Office says Friday is the last day for Kentuckians to file a claim to receive a payment under the national mortgage settlement. Thousands of borrowers who lost their homes between 2008 and 2011 may be eligible to receive a payment.
The nation's five largest mortgage servicers agreed to the settlement with the federal government and 49 state attorneys general last year.
"Basically this settlement settles claims by the attorneys general that during the housing crisis and foreclosure crisis in the United States, these banks had allegedly engaged in fraudulent behavior which included robo signing documents that it filed with the court," said Allison Martin, a spokeswman for the Kentucky Attorney General's Office.
Kentucky legislative leaders say solutions on how to pay for Kentucky’s underfunded pensions won’t likely be addressed in the 2013 legislative session.
Both House Speaker Greg Stumbo and Senate President Robert Stivers say there will likely be a bill to introduce changes to the pension systems. But they also agree that such a bill is unlikely to deal how to fund the changes.
What they disagree on is when to deal with the funding solutions. Stumbo says pension funding should be dealt with in a special session, hand in hand with tax reform.
“There’ll be a bill, I don’t know whether it will be addressed," Stumbo says. "I think that we need, probably, to address the entire issue and that include the funding mechanism."
But Stivers says lawmakers should pass the changes now and deal with fully funding the pension system starting in 2014, when a new budget must be passed.
The Courier-Journal is reporting that Kentucky Gov. Steve Beshear will consider proposing an expanded gambling package this year that does not include increased gaming at the state's horsetracks.
Beshear says that may be the only way he can get a gambling bill passed in the state legislature.
The Governor has tried unsuccessfully in the past to get a casino gambling bill through the Kentucky Senate. Expanded gambling supporters have hoped that last year's retirement of former Senate President David Williams, who opposed increased gaming, would better the bill's odds in 2013.
A decline in coal mining tax revenue has many of Kentucky’s top officials concerned. House Speaker Greg Stumbo and Governor Steve Beshear say they are worried about the declining revenues form the coal severance tax.
The tax is used for a variety of state, county and local infrastructure projects, mostly in Eastern Kentucky. Beshear says the drop in revenue reflects the tough market for Kentucky coal.
“I am concerned about the coal severance receipts, they are down, they’re down significantly. And that because coal mining is down significantly, the tons of coal mined has dropped.”
Beshear says exports, mainly to India and China, could help the revenues rebound. However, the first shipment of coal in a celebrated trade deal with an Indian company is months behind schedule.
Originally published on Thu December 27, 2012 2:18 pm
Even as Air Force One was about to land in suburban Maryland this morning — bringing President Obama back from his vacation in Hawaii to resume negotiations aimed at avoiding the so-called fiscal cliff of automatic tax increases and spending cuts — Senate Majority Leader Harry Reid was on the floor of the Senate warning that a dive off that cliff seems inevitable.