How Should AG Settlement Funds Be Used?

If money from the national mortgage settlement is not used for principal reduction, how should it be spent? We posed that question to readers last week offering a few options (respondents could pick more than one) and here’s the response. Note we did not include “pay down state debt” as an option.

See selected reader feedback at the jump.

Enterprise Community Partners released a report in April as part of an ongoing effort to track how states are using AG settlement funds. That report, while optimistic amid early signs that the funds would be spent on housing-related activities, remained concerned that some states’ more ambiguous plans would allow states to shift funds to non-housing projects. In the meantime, here’s what you had to say:

“It should be used in ways that will stimulate the housing market. Counseling is the most critical element. The other important components should be used to increase access to quality housing.”

“It should be used for the purchases of mortgages by a third party (the Mortgage Resolution Fund model). All funds should be used to offset the devastation caused by the foreclosure crisis. More money is needed to support counseling agencies (infrastructure and admin included).

“We should be providing legal aid for homeowners at risk of foreclosure and more direct foreclosure mitigation.”

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