Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Billion Dollar Bait & Switch: States Divert Foreclosure Deal Funds
States have diverted $974 million from this years landmark mortgage settlement to pay down budget deficits or fund programs unrelated to the foreclosure crisis, according to a ProPublica analysis. Thats nearly forty percent of the $2.5 billion in penalties paid to the states under the agreement.
The settlement, between five of the countrys biggest banks and an alliance of almost all states and the federal government, resolved allegations that the banks deceived homeowners and broke laws when pursuing foreclosure. One part of the settlement is the cash coming to states; the deal urged states to use that money on programs related to the crisis, but it didnt require them to.
ProPublica contacted every state that participated in the agreement (and the District of Columbia) to obtain the most comprehensive breakdown yet of how theyll be spending the funds. You can see the detailed state-by-state results here ( SEE LINK BELOW), along with an interactive map. Many states told us theyll be finalizing their plans in the coming weeks. Well be updating our breakdown as the results come in.
What stands out is that even states slammed by the foreclosure crisis are diverting much or all of their money to the general fund. In California, among the hardest hit states, the governor has proposed using all the money to plug his states huge budget gap. And Arizona, also among the worst hit, has diverted about half of its funds to general use. Four other states where a high rate of homeowners faced foreclosure during the crisis are spending little if any of their settlement funds on homeowner services: Georgia, South Carolina, Wisconsin, and Maine.
The settlement, between five of the countrys biggest banks and an alliance of almost all states and the federal government, resolved allegations that the banks deceived homeowners and broke laws when pursuing foreclosure. One part of the settlement is the cash coming to states; the deal urged states to use that money on programs related to the crisis, but it didnt require them to.
ProPublica contacted every state that participated in the agreement (and the District of Columbia) to obtain the most comprehensive breakdown yet of how theyll be spending the funds. You can see the detailed state-by-state results here ( SEE LINK BELOW), along with an interactive map. Many states told us theyll be finalizing their plans in the coming weeks. Well be updating our breakdown as the results come in.
What stands out is that even states slammed by the foreclosure crisis are diverting much or all of their money to the general fund. In California, among the hardest hit states, the governor has proposed using all the money to plug his states huge budget gap. And Arizona, also among the worst hit, has diverted about half of its funds to general use. Four other states where a high rate of homeowners faced foreclosure during the crisis are spending little if any of their settlement funds on homeowner services: Georgia, South Carolina, Wisconsin, and Maine.
http://www.propublica.org/article/billion-dollar-bait-switch-states-divert-foreclosure-deal-funds
Link to state by state data here:
http://www.propublica.org/special/where-are-the-foreclosure-deal-millions-going
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
2 replies, 1000 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (4)
ReplyReply to this post
2 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Billion Dollar Bait & Switch: States Divert Foreclosure Deal Funds (Original Post)
PA Democrat
May 2012
OP
sad sally
(2,627 posts)1. Surprised? This will take all criticism and further investigation off the banks and onto the states
PA Democrat
(13,225 posts)2. Not surprised at all.
I think this was one of the main criticisms of the deal.