mortgage settlement


Financial relief provided to Floridians under a mortgage settlement has far exceeded what state officials expected, according to a new national report. More than 120,000 Floridians have received billions of dollars in in aid so far from five major banks.

The report shows much of the roughly $9 billion in assistance has been from lenders forgiving loans or liens to enable home sales. It’s just a piece of the landmark $25 billion settlement that came after an investigation of foreclosure abuses.

After months of back-and-forth talks between the Florida Attorney General’s office and state legislative leaders, the two sides have come to an agreement on how to spend $300 million dollars.The money is Florida’s share of a $25 billion dollar settlement agreement with five of the nation’s largest banks over sketchy foreclosure practices.

Florida Attorney General Pam Bondi remains adamant that her office, not the legislature should decide how to spend $300 million. The money is Florida’s share of a $25 billion foreclosure settlement with the nation’s five largest mortgage companies. State Representative Michelle Rehwinkle Vasilinda of Tallahassee wants a portion of the money to be spent on state employee pay raises, but Bondi says that’s not going to happen.

State of Florida

The Florida Attorney General’s office is engaged in a tug-of-war with the state legislature over which group can decide how to spend a $300 million mortgage settlement, but one local  state lawmaker wants to divert part of the settlement to pay raises for state employees.

The $300 million is Florida’s share of a $25 billion dollar settlement with five of the nation’s biggest banks involved in the foreclosure crisis. And Tallahassee state representative Michelle Rehwinkle Vasilinda wants the legislature to put aside a portion of the money for state employee pay raises.