Local News


Nevada getting nothing from mortgage settlement

Posted at 7:16 PM, Feb 11, 2016
and last updated 2016-02-11 22:25:05-05
Morgan Stanley is paying $2.6 billion for its role in the country's mortgage meltdown.
Nevada won't be getting a piece of the pie.
This settlement is based on Morgan Stanley's marketing of mortgage backed securities.
The bank acknowledging that it increased the acceptable risk on mortgage loans sold to investors.
Nevada will not be getting a dime of the $2.6 billion dollar settlement.
Current Attorney General Adam Laxalt's office released a statement saying the prior attorney general evaluated whether to participate in the working group from which this settlement derived, but could not provide other statements because he was not involved.
We have reached out to former AG Catherine Cortez-Masto, but have not heard back.
Sources tell 13 Action News that Cortez-Masto's administration worked with the state PERS leaders.
We are told PERS did not like the risk involved in buying mortgage backed securities.
Since the state was not impacted by the practices, they could not join in the settlement.
States that are part of the multi-billion dollar settlement are using the money toward principal reductions for homeowners and other programs.