Thursday, October 11, 2012

McCune Davis: Judge’s ruling on mortgage settlement fund ‘not the final word on the matter’

McCune Davis: Judge’s ruling on mortgage settlement fund ‘not the final word on the matter’


STATE CAPITOL, PHOENIX – Recently, a Maricopa County judge dismissed a lawsuit that would have prevented Republicans in the Legislature from sweeping $50 million from a fund intended to help Arizonans struggling as a result of the foreclosure crisis.

“This is not the final word on the matter,” Rep. Debbie McCune Davis, D-Phoenix (District 14), said. “The judge may think this sweep is legal, but it certainly does not make it right. I am disappointed that my Republican colleagues put their special interest priorities above the needs of Arizona residents and local communities affected by home foreclosures. The settlement clearly stated how this money should be used. That should be reason enough for the Republicans to keep their hands off it.”

McCune Davis vehemently opposed Tea Party Republicans’ decision to raid $50 million from the mortgage settlement fund earlier this year. This fund was created by a joint state-federal settlement with the country’s five largest residential mortgage loan servicers who engaged in fraudulent loan and foreclosure practices. The money was supposed to help Arizonans who lost homes, or are in need of home loan modifications, or are current on mortgage payments but are underwater as a result of the mortgage crisis. Instead, Republicans put $50 million of the settlement into the general fund to pay for things like new contracts with private prison companies.

“We know that people are still struggling to keep their homes and trying to recover from the housing crisis. Helping them should be a priority. The mortgage settlement fund is an important resource to that end,” McCune Davis said. “Apparently, the Republicans at the State Legislature would rather see the money spent on other things, like for-profit, private prisons. Such callous decisions show that the Tea Party Republicans here do not understand the priorities of the people of Arizona.”


For more information on the mortgage settlement fund, go to www.azag.gov/consumer/foreclosure/settlement.html.



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