A dispute over promises made 20 years ago by Bank of America to provide $150 million in mortgage loans to Native Hawaiians on Department of Hawaiian Home Lands land prompted Gov. David Ige to invite Bank of America officials to Hawaii this summer to discuss “a fair and final settlement.”

In an April letter Ige told Bank of America’s chief operations and technology officer that the bank committed $150 million in loans in connection with the bank’s 1993 application to acquire Liberty Bank in Honolulu, which was challenged by Na Po‘e Kokua, fiscal sponsor of the Hawai‘i Fair Lending Coalition.

“The Federal Reserve Board’s May 31, 1994 order approving Bank of America’s acquisition of Liberty Bank was ‘specifically conditioned upon compliance with all of the commitments made by Bank of America in connection with this application,’ which included Bank of America’s ‘commitment of $150 million to the FHA 247 loan program,’” Ige wrote.

Federal Housing Administration 247 loans were specifically for low-and moderate- income Native Hawaiians to purchase homes on Hawaiian homelands.

Bank of America spokeswoman Jumana Bauwens told the Honolulu Star-Advertiser that the issue is moot.

“We received Gov. Ige’s letter and provided a response explaining that, in October 2007, the Department of Hawaii Homelands validated Bank of America had fulfilled its goal,” Bauwens wrote in an email. “This matter was closed at that time.”

Ige’s chief of staff, Mike McCartney, provided the Star-Advertiser with a 2007 letter from the Department of Hawaiian Home Lands that read in part, “The state of BoA contributions toward fulfillment of its commitment appear to be in order. The Department of Home Lands (DHHL) is therefore pleased to formally acknowledge that the $150,000,000 commitment has been met by Bank of America.”

But Bumpy Kanahele, who was involved in the effort that led to Bank of America’s $150 million commitment in FHA 247 loans, believes the total amount of mortgage loans that Bank of America provided “was clearly exaggerated.”

In all, Kanahele — CEO of the Aloha First Hawaiian sovereignty organization — believes the bank only completed 10 percent of its obligation, or less than $15 million in loans, by 2002.

With interest, Kanahele believes Bank of America should be responsible for as much as $300 million worth of mortgages to Native Hawaiians on Hawaiian homelands.

“I would like them to fulfill the commitment,” Kanahele said. “We as taxpayers, we as Hawaiians, have the same commitments to them to pay our obligations. If no pay, we get evicted. Your car get taken away, whatever. Bank of America could have taken care of everything back in the 1990s. Twenty years later it’s not fulfilled. Interest has been rising on them to give us what’s due. It’s way over $300 million.”

Ige invited Bank of America officials to come to Hawaii — on the eve of the 20th anniversary of the original meetings that led to the loan commitments — “to share in person the need for affordable housing and Hawaii’s desire to work with Bank of America to help Native Hawaiians get loans for much-needed housing,” McCartney, said in an email to the Star-Advertiser.

In response to Bank of America’s position that it has fulfilled its obligation, McCartney said Ige will continue to push for low- and moderate-income mortgages for Native Hawaiians from the bank.

“The administration will continue to pursue discussions with Bank of America and affordable housing advocacy groups to address these specific concerns of Native Hawaiians,” McCartney wrote. “The governor’s overall goal is to ensure that people can get loans, especially those community members who have been traditionally underserved.”