Mary Ellen Klas | Times/Herald Tallahassee Bureau |
“From Stateline.org:
Florida is among the state’s that has used its millions received from the multi-billion dollar settlement with major mortgage lenders to plug budget holes, according to a new report from Stateline.org, a project of Pewstates.org.
Florida recieved $334 million from the legal settlement stemming from state charges that banks used improper mortgage lending practices. Florida used about $260 million of it to benefit homeowners. The remaining $74 million went into the general fund, according to the report.
Jennifer Meale, spokeswoman for Attorney General Pam Bondi, said that the state was allowed to designate up to 10 percent of the national settlement paid to the state as a civil penalty that could be sent to the state’s general fund.Florida decided it would designate $74 million, she said.
According to the report all states used at least $1 billion of the $2.5 billion they received from the settlement with the banks to pay for pet projects or promote economic development.
In addition to the $2.5 billion, the banks agreed to an estimated $51 billion in relief that Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and Ally Financial (formerly GMAC) to pay directly to homeowners as part of the settlement agreement with the states. The banks agreed to the settlement in response to widespread errors and abusive practices that included “robo-signing” documents in foreclosure proceedings that pushed some people out of their homes unnecessarily.
States have no role in providing the $51 billion in relief to homeowners but they do have discretion over the additional $2.5 billion, which was intended to ameliorate the housing crisis. More here.
Here’s how Florida spent its $334,073,974 according to the report:”