Connecticut Gov. Dannel P. Malloy outlined how the state will apportion its share of a $25 billion mortgage foreclosure servicing settlement reached with five large lenders earlier this year.
As a result of settlement proceeds, Connecticut will direct:
Ӣ $119 million to mortgage loan modifications and refinancing;
”¢ $7.3 million to foreclosure “victims” in the state”™s words; and
Ӣ $28.1 million to offset effects of the foreclosure crises.
In a press release, Malloy and Connecticut Attorney General George Jepsen stated the funding will give Connecticut the tools it needs to weather the remainder of the foreclosure crisis, avoid preventable foreclosures and ensure that the state”™s borrowers receive the full benefits of the settlement. At the time of the initial bank agreement, Jepsen won recognition as one of the main drivers in the deal negotiating the largest joint federal-state settlement in history.
“At a time when other states are using money from this settlement to plug holes in their budgets, Connecticut is taking a different path,” Malloy stated. “We know that many homeowners are still struggling, and until we find a way to bring stability to the housing market, there will continue to be a drag on our recovery. This funding will help assist a critical component of our overall economic goal, to promote economic growth that is sustainable and benefits a majority of our residents.”
