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Judge to consider use of mortgage settlement cash

Judge to consider use of mortgage settlement cash

CREATED Aug 22, 2012

Web Producer: Ina Ronquillo

PHOENIX (AP) - A judge holds a hearing Wednesday to consider a challenge to use $50 million of Arizona's mortgage settlement money to help balance the state budget.
The state wants a Maricopa County Superior Court judge to dismiss the suit. The plaintiffs want him to block the transfer now temporarily on hold to allow the judge to consider the case.
While some states are using their shares of the settlement paid by lenders to bolster or create housing-related programs, Arizona is among others using all or parts of their shares for other purposes.
The $50 million represents slightly more than half of the $98.8 million of Arizona's share.
The settlement also provides additional money intended to provide direct compensation for borrowers.

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