Florida AG At Odds With Legislature On Settlement Funds

Posted by Orb Staff on August 10, 2012 No Comments
Categories : Mortgage Servicing

12168_220px-bondi_bio_photo Florida AG At Odds With Legislature On Settlement Funds Florida Attorney General Pam Bondi is in a tug-of-war with the state legislature over the $300 million that Florida received in a cash payout from the National Mortgage Settlement.

The Miami Herald reports that Bondi insists her office has the authority to allocate the funds. Although the state's constitution gives the legislature sole authority for spending decisions, Bondi notes that the funds are based on a legal settlement negotiated by her office.

Florida is one of the few states that hav yet to determine how to use their cash payments from the settlement. A recent report issued by Enterprise Community Partners, a Washington, D.C.-based affordable housing organization, found that only 26 states were ‘substantially’ using their settlement funds for housing, while other states have diverted their funds, either partially or in full, to non-housing endeavors. Bondi insists that she wants the funds to go directly to Florida homeowners.

‘All I care about is that the money goes to the appropriate people, which are the homeowners who were affected,’ says Bondi, adding that the funds are currently in an escrowed account.

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