Michigan Attorney General Bill Schuette testified before the Senate Banking and Financial Institutions Committee Thursday and outlined his proposal to spend $97 million over four years as part of the money Michigan will receive from its part in a $25 billion mortgage fraud settlement with five major financial institutions.
Mr. Schuette indicated that the consent judgment in the matter would be finalized Friday and that Michigan could expect to begin receiving money this summer.
Explaining that the dollars from this settlement must be used in manners associated with the mortgage crisis, the Attorney General shared his proposal to utilize $31 million in payments to those who suffered from foreclosure, $20 million for children affected by foreclosure, another $20 million for foreclosure counseling, $10 million in assistance for servicemen and women, $10 million in restitution to rescue scam victims and $6 million for the Attorney General’s Home Protection Unit.
The AG was also clear that he was not advocating for the continued funding of these or similar programs once the resources from the settlement are fully spent.