How Should AG Settlement Funds Be Used?
Posted by Matthew Brian Hersh on May 29, 2012
If money from the national mortgage settlement is not used for principal reduction, how should it be spent? We posed that question to readers last week offering a few options (respondents could pick more than one) and here's the response. Note we did not include "pay down state debt" as an option.
See selected reader feedback at the jump.
Enterprise Community Partners released a report in April as part of an ongoing effort to track how states are using AG settlement funds. That report, while optimistic amid early signs that the funds would be spent on housing-related activities, remained concerned that some states' more ambiguous plans would allow states to shift funds to non-housing projects. In the meantime, here's what you had to say:
"It should be used in ways that will stimulate the housing market. Counseling is the most critical element. The other important components should be used to increase access to quality housing."
"It should be used for the purchases of mortgages by a third party (the Mortgage Resolution Fund model). All funds should be used to offset the devastation caused by the foreclosure crisis. More money is needed to support counseling agencies (infrastructure and admin included).
"We should be providing legal aid for homeowners at risk of foreclosure and more direct foreclosure mitigation."
What's your take? You can comment in the comment area here or take the survey at www.nhi.org/go/survey/52312
About the author more »
Matthew Brian Hersh proudly served as senior editor at Shelterforce from March 2008 to October 2012. He studied English at Rutgers University and has spent his professional career in journalism, policy, and politics. He displays many of the trappings of a New Jersey sports fan: dispirited Mets fan, former Nets fan before they left the state, and normally satisfied Giants fan. Hersh lives in Highland Park, NJ with his wife and two children.