GOP raids mortgage settlement fund

February 20, 2012

Yesterday, the House and Senate money committees revealed their amendments to Governor McDonnell's two-year budget plan. Buried in the spending plan is a proposal to divert Virginia's share of the national mortgage settlement with the big banks into funding legislators' priorities rather than helping homeowners who were the victims of fraudulent mortgage practices.

Progressive Point: Virginia Republicans had an opportunity in their partisan budgets to refocus their agenda on Virginians' priorities and leave behind the divisive ideological attacks on Virginia families. Instead, conservatives have again indicated that they have absolutely lost touch with Virginia's working families. Virginia's share of the landmark national mortgage settlement was intended to help make whole Virginia homeowners who were victims of the big banks' greed and rush to foreclosure. Instead of closing egregious tax loopholes and ensuring that Virginia corporations are paying their fair share for essential community services, conservatives are diverting nearly $70M intended to directly help Virginia families. Virginians need a balanced approach to the budget that asks everyone to contribute to our community, not more attacks on working families.

Get the Facts:

• According to the Department of Justice, direct state payments in the settlement were intended to provide "fund housing counselors, legal aid and other similar public programs determined by the state attorneys general." (Department of Justice February 9, 2012)


• According to Attorney General Cuccinelli, Virginia is set to receive over $69 million in direct payments from the settlement. (Office of the Attorney General)

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