Hey Folks!
This is your Hard Money Lender in Tucson and the Southern Arizona area, Billy A. I came across this great article I wanted to share with you that was posted in the Arizona Business Gazette by Howard Fischer. It’s about a housing advocacy group attorney asking a judge to void lawmakers decision to take $50 million that Arizona received as part of a nationwide mortgage fraud settlement. Here’s the meat of the article:
Housing Advocates Fight Loss of $50 Mil
by Howard Fischer
An attorney for housing advocacy groups is asking a judge to void a decision by lawmakers to take $50 million from the cash Arizona received as its share of a nationwide mortgage fraud settlement.
Tim Hogan said the settlement signed by Attorney General Tom Horne on behalf of Arizona put the dollars into a special trust fund. Hogan told Maricopa County Superior Court Judge Mark Brain that made the cash off-limits to legislators who want to use it to balance the budget.
Horne, while publicly objecting to the seizure at the time, eventually gave in. And Doug Northup, who is representing Horne, told Brian that there was nothing illegal about that.
The fight is a direct outgrowth of a nationwide $26 billion deal with five lenders. Arizona’s share is about $1.6 billion.
Most of that is earmarked as direct aid for homeowners, to help them avoid foreclosure. Some funds also compensate those who were improperly forced out of their homes.
This fight is over the $97 million specifically for the state.
Hogan pointed out that the settlement spells out how those dollars can be used, including “to avoid preventable foreclosures” and to help prevent and prosecute financial fraud. The paperwork goes on to list examples, such as paying for housing counselors, legal assistance and foreclosure-assistance hot lines.
Horne initially fought the move by the Republican-controlled Arizona Legislature to divert $50 million of that to balance the budget, calling it “bad public policy.”
But he eventually said — and Northup argued — the move is not illegal, saying the agreement permits other uses for the cash.
Brain told Hogan the language in the agreement is “wonderfully broad,” pointing out it even notes that money can be used to compensate the state for its losses. And legislators, in justifying the move, said the state budget suffered greatly because of the whole mortgage-foreclosure mess, which sent property values into a tailspin and reduced state tax collections.
Northup added that the agreement says the permitted uses “include, but are not limited to” the specified items.
To read the full article, click the link below:
We’ll keep our eye on this one and let you know how the story develops.
Well folks, that’s it for now! Make it another great day!
Your Hard Money Lender in Tucson & Southern Arizona,
Billy A
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