Rep. Moore Sends Letter to Attorney General Holder Seeking to Ensure Mortgage Settlement Funds Are Used to Help Homeowners
Washington, DC,
February 16, 2012
Today, Congresswoman Gwen Moore (WI-4) sent a letter to Attorney General Eric Holder seeking to ensure that funds from the recent foreclosure and mortgage-servicing settlement would in fact be used to assist troubled homeowners and not for other means.
Letter sent in response to Wisconsin Gov. Scott Walkers attempt to use settlement funds for budget shortfall Washington, D.C. – Today, Congresswoman Gwen Moore (WI-4) sent a letter to Attorney General Eric Holder seeking to ensure that funds from the recent foreclosure and mortgage-servicing settlement would in fact be used to assist troubled homeowners and not for other means. This action is in response to the decision by Wisconsin Governor Scott Walker and state Attorney General J.B. Van Hollen to use a portion of the state’s $140 million share of the settlement to help the state budget instead of its intended purpose. The letter reads as follows: February 16, 2012 Attorney General Eric Holder Dear Attorney General Holder: As you may know, Wisconsin Governor Scott Walker and state Attorney General J.B. Van Hollen recently indicated their intention to use a portion of the state’s $140 million share of a national settlement over foreclosure and mortgage-servicing abuses to help the state budget rather than assist troubled homeowners. Governor Walker claimed the funds would be spent to close a budget deficit in response to the State’s unanticipated revenue shortfall. I strongly believe that this action would be inconsistent with the context and intent of the lawsuit and unfair to the people of Wisconsin, who continue to struggle as a result of the fraudulent behavior of Wall Street. Therefore, I respectfully request your Department’s attention to this matter and urge you to work to ensure that all settlement funds are used for their rightful purpose. It is my understanding that the language of the agreement is not yet finalized. I would encourage your Department to work to include language that states that servicer payments can only be used in accordance with the intent and context of the lawsuit. It is disingenuous for Governor Walker and Attorney General Van Hollen to siphon money from this agreement that was meant to help Wisconsinites to bailout the state budget. The funds from the settlement should be used as they were intended - to help the victims of the housing crisis in Wisconsin whose homes were foreclosed upon. As the language of the settlement agreement is finalized, I urge your Department to work in any way possible to include fair and concise guidelines to ensure these funds are used for their intended purpose. I applaud President Obama and his Administration’s commitment to vigorously pursue its investigation of mortgage services, putting in place new protective guidelines to guard consumers against unscrupulous lenders and bringing about justice for those who have fallen victim to predatory practices. This settlement is an extremely positive step towards bringing relief to the thousands of desperate homeowners and deeply affected victims of unfair mortgage loan servicing practices and foreclosure abuses in my state. It is my hope that you can make certain Wisconsinites receive the much needed assistance that they deserve. Thank you in advance to your urgent attention to this matter. Sincerely, Gwen S. Moore (WI-4) ### For “Moore” News Updates Follow Gwen Like Gwen Moore on |
