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Indiana IOLTA expected to benefit from Bank of America settlement

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Indiana’s Interest on Lawyers’ Trust Account program is expecting to receive a portion of the federal government’s historic multi-billion-dollar settlement with Bank of America, bringing a much-needed influx of funds to the program that has suffered dramatic declines in revenues as a result of the economic recession.

Charles Dunlap, executive director of the Indiana Bar Foundation which administers the state’s IOLTA program, said he is pleased with the additional resources but cautioned the financial help will not arrive immediately.

“It could take several years for the funds to be distributed so relief for people struggling with mortgage foreclosure could still be more than a year away,” he said.

Dunlap was recently elected president of the National Association of IOLTA programs. He has been a member of the national organization for 13 years.

The U.S. Department of Justice announced the $16.65 billion settlement Aug. 21 to resolve federal and state claims against Bank of America and its former and current subsidiaries, including Countrywide Financial Corp. and Merrill Lynch, for financial fraud leading to and during the Great Recession.

This is the largest civil settlement with a single entity in American history and will provide billions of dollars in relief to struggling homeowners.

Although the portion of the settlement slated to come to Indiana is unknown, Dunlap, said the amount will be significant.

“While $17 billion is certainly a big number, the portion that Indiana’s IOLTA program will receive is only a small portion of the overall amount and comes on the heels of over five years of unprecedented low revenues due to the historically low prevailing interest rate environment we have experienced,” Dunlap said. “We are extremely grateful for the increased ability we will have to help struggling Hoosiers with these settlement funds, but we have to be patient to see how all the details work out.”

 
 

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  1. A sad end to a prolific gadfly. Indiana has suffered a great loss in the journalistic realm.

  2. Good riddance to this dangerous activist judge

  3. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  4. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  5. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

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