Legislature Finalizes Mortgage Foreclosure Settlement Spending

Michigan joined other states and the Federal Government in entering into a settlement this year with five mortgage companies – Michigan’s share was roughly $800 million. The lion’s share of the settlement went directly to victims of unfair foreclosure practices. The State was left with a bit less than $100 million - $87.2 million of which was contained in a spending plan sent to Governor Rick Snyder on Wednesday.

House Bill 5015, sponsored by House Appropriations Chair Chuck Moss (R-Birmingham) had moved to the Senate in June as an empty vehicle measure. The new plan was inserted, passed by the Senate 31-6, and promptly returned to the House. The House then approved the measure 100-3, sending it to the Governor.

Highlights of the plan include:

· $25 for demolition of blighted residential areas, with $10 specifically for Detroit

· $15 million to the Michigan State Housing Development Authority (MSHDA) for legal aid and counseling services related to foreclosures

· $5 million to the Department of Military & Veterans Affairs specifically for members of the military affected by foreclosure

posted by PAA Online , Friday, July 20, 2012 9:56 AM
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