On February 9, the Obama Administration, working with 49 of the 50 states’ attorneys general (Oklahoma chose not to participate), reached a landmark settlement of $25 billion (in aggregate) with the five largest mortgage servicers.
Michigan will have access to $97 million of this settlement. Michigan Attorney General Bill Schuette announced a plan for allocating this $97 million. His proposal includes $10 million in Foreclosure Rescue Scam Victim Restitution, $20 million in Foreclosure Counseling for Homeowners, $6 million to the Michigan Attorney General Home Protection Unit, and $9.7 million to the Michigan Housing and Community Development Fund.
It is CDAD’s view that the funds should be allocated in a way that benefits communities affected by foreclosure. For more information, view the documents below:
Attorney General Schuette’s recommended allocations must be approved by the state legislature as part of the budget deliberations. We encourage our CDAD Members to contact your local legislators and push them to support our view.