Ariz. officials agree to delay transfer of mortgage settlement funds to state budget - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Ariz. officials agree to delay transfer of mortgage settlement funds to state budget

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Saturday, June 16, 2012 6:40 pm

State officials agreed Tuesday to delay the transfer of $50 million of disputed mortgage settlement funds, at least for the time being.

Assistant Attorney General David Weinzweig made the offer during a hearing where challengers were hoping to get a court order blocking the move while its legality is being decided by Maricopa County Superior Court Judge Mark Brain. Attorney Tim Hogan of the Arizona Center for Law in the Public Interest, who represents those opposed to the transfer, readily agreed.

“You don’t want to rush the judge,” said Hogan, whose clients are people he believes would be helped by the funds.

“You want him to take his time on important questions like this,” Hogan said. “And so it’s reasonable to agree not to transfer the funds for a certain period of time to give the judge the opportunity to do that.”

The move sets the stage for a hearing in August on the merits of the issue.

Weinzweig told Brain he believes the transfer, ordered by state lawmakers earlier this year, is legal. Anyway, he said, Hogan’s clients have no legal standing to challenge what the Legislature did.

The fight surrounds a $26 billion nationwide settlement with five major lenders who were accused of mortgage fraud.

Arizona’s share is about $1.6 billion, with virtually all of that earmarked for direct aid to those who are “under water” on their mortgages — owing more than their property is worth — or have already been forced out of their homes.

But the deal also provided $97 million directly to the state Attorney General’s Office. The terms of that pact said the cash was supposed to help others with mortgage problems as well as investigate and prosecute fraud.

Lawmakers, however, seized on language which also said the money can be used to compensate the state for the effects of the lenders’ actions.

They said the result of the mortgage crisis was lower state revenues, giving them permission to take $50 million from the settlement to balance the budget for the fiscal year that begins July 1.

Hogan’s suit is based on his contention that the settlement terms put the entire $97 million in trust and makes Attorney General Tom Horne, who was authorized by state law to sign the deal, responsible for ensuring the cash is properly spent.

Horne urged lawmakers not to take the funds. But once the budget deal was done, he went along and took the position that, regardless of whether the cash could have been better spent elsewhere, the transfer demand is legal.

Whatever Brain rules is likely to be appealed.

The challenge was brought on behalf of two people who would benefit by the state having more money to help homeowners avoid foreclosure. The lawsuit said both are currently “at risk” of losing their homes.

More about

  • Discuss

Dry Heat Check Podcast Ep. 1: Suns Draft, 80s Movies and More

It is the first ever edition of the Dry Heat Check with Jared Cohen and Greg Esposito or also known as the Devin Booker episode because Booker…

Published: June 28, 2016 - 9:55 pm @ http://www.sports360az.com/2016/06/dry-heat-check-…

Free A/C Into Saturday

September Breeze - Promising Holiday Outlook "There's no such thing as bad weather, just soft people" said Bill Bowerman. True, Bill wasn't ar…

Published: June 28, 2016 - 9:55 pm @ http://www.startribune.com/free-a-c-into-saturday-…

It's Not a Comeback, Lots of Updates, and a Hard Lesson Learned

What happens when The Beginning Farmer disappears for months on end? Well, actually lots things happen! Just recently I've been to Arizona to …

Published: June 28, 2016 - 9:07 pm @ http://thebeginningfarmer.blogspot.com/2016/06/tbf…

Two TV Reporters Charged With Child Abuse After 4-Month-Old Daughter Tests Positive for Cocaine in Tucson

Two Arizona television personalities face multiple charges after their baby became ill and eventually tested positive for cocaine, according t…

Published: June 28, 2016 - 8:57 pm @ http://ktla.com/2016/06/28/baby-of-arizona-tv-repo…

You can now major in ‘Moneyball’

First it was a strategy. Then a book. Then a movie. Now “Moneyball,” Michael Lewis’ tale of how the payroll-challenged Oakland A’s used data t…

Published: June 28, 2016 - 8:24 pm @ http://nypost.com/2016/06/28/you-can-now-major-in-…

Buddy Ryan has inspired two things: love and hate

Baseball Oh, Brother, What a Team The barnstorming Fredrickson boys were a baseball sensation of the 1920s Beating the Bushes Duke-bound Alask…

Published: June 28, 2016 - 7:54 pm @ http://www.si.com/vault/1994/07/11/131606/buddy-du…

Brush fire closes I-17 north of Phoenix, part of nearby town evacuated

PHOENIX — A brush fire forced the closure of Interstate 17 north of Phoenix and the evacuation of part of a small town on Tuesday, the Yavapai…

Published: June 28, 2016 - 7:36 pm @ http://ktar.com/story/1146757/brush-fire-closes-i-…

Phoenix Suns accelerate rebuilding process with 2016 NBA Draft

PHOENIX - Marquese Chriss wanted to play in Phoenix but figured his chance had passed when the Suns used the No. 4 overall pick of the NBA dra…

Published: June 28, 2016 - 7:24 pm @ http://www.abc15.com/sports/sports-blogs-local/pho…

animago AWARD Extends Submission Deadline to July 19

MUNICH, GERMANY -- The submission deadline for this year’s animago Award has been extended. Creatives from all over the world now have until J…

Published: June 28, 2016 - 7:23 pm @ http://www.awn.com/news/animago-award-extends-subm…

A Desert City's Sustainability Turnaround

Once derided as the world's least environmentally sustainable city, Phoenix is in the midst of a remarkable transformation. From a sustainable…

Published: June 28, 2016 - 6:23 pm @ http://www.governing.com/blogs/view/gov-phoenix-en…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…