Scott Walker to spend state’s mortgage settlement money to fix his budget shortfall

But I thought Gov. Scott Walker said he balanced Wisconsin’s budget…

Wisconsin will use a chunk of its $140 million share of a national settlement over foreclosure and mortgage-servicing abuses to help the state budget rather than assist troubled homeowners, Gov. Scott Walker and state Attorney General J.B. Van Hollen said Thursday.

I think it’s an absolute travesty that instead of using all of Wisconsin’s settlement over foreclosure and mortgage-servicing abuses to help homeowners who still may be struggling to stay in their homes, Gov. Walker is going to use that money to fix a gaping hole in the state budget that he has said time and time again was balanced.

Milwaukee has been absolutely devastated by predatory lending practices, with more than 20,000 foreclosure actions started on Milwaukee property owners since 2008, and Scott Walker’s decision to spend tens of millions of dollars of this settlement fixing the hole in his state budget rather than assisting struggling homeowners shows how little Gov. Walker cares for folks who are struggling.


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17 thoughts on “Scott Walker to spend state’s mortgage settlement money to fix his budget shortfall

  1. I was thinking the cop and firefighter bennies would be on the chopping block next, but this seems like an easier target for Walker.

  2. This was predictable:
    $5 billion will go as a hard cash penalty to the states, which can use them for legal aid services, foreclosure mitigation programs, and ongoing fraud investigations in other areas (one official close to the talks feared that much of that hard cash payout will go in some Republican states toward filling their budget holes). (emphasis added)

  3. Looks like the homeowners take it in the ear twice, huh?

    But if the settlement is because the homeowners (aka, our neighbors) were cheated, then the money doesn’t morally belong to the State but to the people.

    Ooops, I used the word “morally.” OK, I get it now. Which takes me back to the first line–yup, in the ear twice. Best Governor money can buy.

  4. Walker and his fans here on the comment section keep yelping that its working- (his budget)—yet he will not steal from those folks who have been hit hardest by the banksters!

    muttmutt Phil
    @swell But I thought it was WORKING Wisconsin!!! You mean it’s NOT? I’m shocked, SHOCKED! #wiunion #WIRecall
    9 minutes ago

    1. Ed Show’s got it now, too:
      Via twitter:
      Ed Schultz
      “Scott Walker to use mortgage settlement cash to close his budget gap what do you think of that, Badgers?”

  5. It could be argued that getting the state’s finances in order saves homeowners in the long run via tax savings

    1. It could be argued that Scott Walker lied when he said he balanced Wisconsin’s budget.

      It could also be argued that we wouldn’t have another budget shortfall if Scott Walker hadn’t given huge tax handouts to big businesses in his last biennial budget.

      It could also be argued that helping homeowners who are struggling would help the economy by providing them with some immediate relief instead of relying on “trickle down” economics to work (which never does).

      1. Using the money to “trickle down’ to a tax savings to all homowners is one way of dispersing the funds. We could argue all day about the effectiveness.
        What I have not read anywhere here is any other ideas regarding how to utilize the settlement.

        1. How about utilizing the settlement to directly assist homeowners who are having difficulties staying in their homes due to predatory lending practices?

          How about using the money to help stop some of the 20,000 foreclosures in the city of Milwaukee?

          Scott Walker wouldn’t want to do that though, because he doesn’t care about most folks who are struggling.

          1. Its easy to make a general statement “help those who are struggling” it is much more difficult to figure out how to administer your type of entitlement without vast fraud and in the end it is nothing but a short term buyout for the banks

  6. I was thinking he would pull a Doyle and raid the malpractice fund. Guess not though. I’m sure you were all silent when our last outstanding Gov. did that.

    1. Mike-ah, we’re not talking about Gov. Doyle; we’re talking about Gov. Walker. Do you support Gov. Walker lying about balancing the state’s budget and then using funds not related to the budget to repair the hole in his budget?

  7. Monetary benefits to Wisconsin will include:
    • Up to an estimated $60 million in benefits from loan modifications and other direct relief.
    • Approximately $17.2 million in uniform payments of up to $2,000 for eligible Wisconsin borrowers who lost their homes to foreclosure from January 1, 2008, through December 31, 2011, and suffered servicing abuses.
    • Approximately $31.3 million in refinancing benefits for eligible borrowers who are currently making payments but owe more than their home is worth.
    • Payment to the State of approximately $31.6 million that may be used for compensation to the State, future law enforcement efforts, additional relief to borrowers, civil penalties and/or funding of foreclosure relief and mitigation programs.
    That evil Scott Walker just doesn’t care about those folks who are struggling!

    1. @ Kim

      I guess there just isn’t anything that Walker does that you and Mike (“the King of Deflection”) couldn’t rationalize.

      Zach wasn’t just uttering ill-defined generalities. He said that the money should go to struggling homeowners. You want him to be more specific about how to administer the funds? First, don’t steal the money, as Walker intends to do, so that there are funds for a specific program to administer. Then, create the program.

      That said, stop leapfrogging right over the underlying problem Zach identified. Walker is taking the money to take care of a shortfall in a budget which he, and his minions (*cough* /People like you and Mike /*cough*), have been claiming that he has already balanced, a shortfall for which he is entirely responsible in the first place because he started giving tax breaks to his corporate buddies the minute that he took office.

      You want to talk about something. Talk about that.

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