Tom Horne details $57M mortgage settlement funds - CBS 5 - KPHO

Tom Horne details $57M mortgage settlement funds

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Arizona Attorney General Tom Horne Arizona Attorney General Tom Horne

Arizona Attorney General Tom Horne has released details of how the state will utilize $57 million in mortgage settlement funds.

The money is from funds awarded to Arizona and 48 other states as part of a $25 billion national mortgage settlement earlier this year. The settlement was with the nation's five largest banks plus $10 million from a separate lawsuit against Bank of America.

At a news conference Monday afternoon, Horne said about $41 million will be used to help keep people in their homes and for consumer restitution.

There will also be funding for enforcement to ensure terms of the settlement are adhered to.

Horne says other funds are earmarked for housing counseling, legal assistance and a communications plan designed to let eligible borrowers know what programs are available.

Senate Democratic leader David Schapira released the following statement after Horne's news briefing:

Arizona's actual allocation from the National Mortgage Settlement is more than $97 million, plus $10 million from a settlement with Bank of America.

What happened to the missing $50 million? The Republican-controlled Legislature and Gov. (Jan) Brewer swiped it to fund special interests.

Instead of helping struggling homeowners, Republicans swiped half the fund while spending money on more private prisons and giving away $440 million in tax cuts for corporations and Wall Street investors.

Since 2007, Republicans have also cut more than $2.9 billion from our kids' schools and kicked tens of thousands of children off healthcare.

Arizona Senate Democrats have stated that sweeping the $50 million from the mortgage settlement was not necessary and have called on Brewer and Legislative Republicans to halt the sweep.

Now they act as if the $50 million doesn't exist.

Copyright 2012 CBS 5 (Meredith Corporation).  All rights reserved.  The Associated Press contributed to this report.

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