RICHMOND, March 2 – Delegate Robert Marshall sought today to require that a $68.9 million received in a settlement payment by the state attorney general’s office actually be used for the settlement and not for other purposes. Marshall’s proposal was an amendment to legislation for the fiscal 2013 state budget that the funds “provided from the Mortgage Servicing Settlement Agreement may only be used for the purposes for which the attorney general's settlement was made.”
The amendment was rejected by the Virginia House of Delegates on a 28-70 roll call vote. Then The House passed the budget bill, 87-12, and sent it to the Virginia State Senate.
Marshall’s amendment targeted money that is part of a landmark $25 billion multi-state settlement agreement with the nation’s five largest mortgage servicers over foreclosure abuses and fraud. State Attorney General Ken Cuccinelli announced Feb. 9 that his office had joined Virginia to the agreement.
“It was worth a try,” Marshall (R., Manassas) said of his amendment. “While we struggle here to balance the state budget during difficult economic times, our state government seems to insist on robbing Peter to pay Paul with the state’s finances. That’s a very strange way to keep the books when we are dealing with the people’s money.”
According to the attorney general’s news release announcing the settlement, the proposed agreement provides $479,594,672 in direct relief or other benefits to the Commonwealth and Virginia home borrowers, and addresses future mortgage loan servicing practices. Included in that figure is a direct payment to the Commonwealth of $69,6576,121, according to the news release.
The mortgage servicers are Bank of America, J.P. Morgan Chase, Wells Fargo, Citigroup, and Ally Financial/GMAC.
Other terms of the settlement include:
Virginia's home borrowers will receive an estimated total of $409,937,551.22 in benefits from loan term modifications and other relief.
Virginia's borrowers who lost their homes to foreclosure from January 1, 2008, through December 31, 2011, and suffered servicing abuse qualify for approximately $31,301,320.91 in cash payments.
The value of refinanced loans to Virginia's underwater borrowers will be an estimated $84,309,742.00. The Bureau of Financial Institutions at the State Corporation Commission, as Virginia's banking regulator, also joined the settlement and will receive an additional $1,000,000.
Delegate Bob Marshall's contact information:
Mobile telephone – (703) 853-4213
Capitol telephone – (804) 698-1013 (during General Assembly sessions)