Louisville to get $1.5 million in settlement funds - 14 News, WFIE, Evansville, Henderson, Owensboro

Louisville to get $1.5 million in settlement funds

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LOUISVILLE, Ky. (AP) -

The city of Louisville will receive $1.5 million and the Kentucky Housing Corp. is getting $7.5 million from a $25 billion national settlement with five big banks over mortgage foreclosures.

The funds come from a $19.2 million allocation Kentucky received as part of the agreement between 49 states and the five banks to provide relief to thousands of homeowners who were foreclosed upon after the housing bubble burst. The funds may be used for principal write-downs and refinancing to homeowners whose mortgages exceed the value of their homes.

In addition to the $19.2 million, Kentucky also received $38.7 million that will be allocated by the administrator of the settlement to consumers who qualify for refinancing, loan write downs, debt restructuring and/or payments of up to $2,000.

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