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Arizona Attorney General Tom Horne on Arizona using $50 million from a mortgage settlement fund to help the state’s budget crisis.
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-- in Arizona -- meant to help people stay in their homes.
Are being diverted to fill Arizona's budget gaps now attorneys representing homeowners are threatening to -- Joining -- is a -- across across here is Tom Horne Arizona attorney general.
Mr.
attorney general thank you so much for joining us so -- I read that fifty million dollars.
From the settlement is gonna go -- to plug budget holes and I think that's one of the things that critics were worried about when they heard about the banks handing over these.
This money to sort of rectify what it happened maybe with robo signing with the foreclosure process that states would get a and then just use it for other things -- is.
What's happening here -- Well the to put it in perspective Arizona will get one point six billion dollars billion with a B.
To help keep people their homes one point three billion for.
Principal reduction another 300 million for many of items that includes.
Interest rate reduction on refinancing.
Sending money to people who already been foreclosed on and so on.
So it's about 3% of the full amount of money available to have to keep people their homes.
I still objected and argued that that we that they should not do that and and negotiated with them to try to keep the amount is -- possible.
But in the final analysis the people control their budget through their elected governor in their elected legislature and the governor and the legislature.
We're in agreement that this fifty million dollars should be transferred.
And like I consider to be legal because one of the menu items -- -- is to.
Compensate the state for its losses resulting from the mortgage crisis.
-- quite what you want by the deep losses and what will this money specifically go to do you help us understand it.
Well the those were the state lost.
You know billions of dollars of revenue because of the recession that resulted at least in part from the mortgage crisis.
And -- so the so there arguing that that's one of the items that the money can be used for so therefore this is -- -- transfer.
And help keep people in their homes.
But I think from a legal standpoint.
They were correct that it it is legal to to transfer the money for that purpose.
And when it comes to decision making I can argue against it I can negotiate to try to keep you -- as low as possible.
But ultimately if the governor and the legislature -- who have the responsibility for the budget are in agreement.
There's there's no room for me don't fight it once they've made their decision and I their pro defendant.
Is it just going into dot giant budget home we'll have no idea what it actually goes for is -- is or do we know where it's going and is there any sense to putting it in a rainy day fund for immediate this ever happens again.
Well money's fungible as you know so if the money goes into the general fund.
Anybody can decide what it what it's going for a lot of people thought it was.
To have to fill a need for a budget item relating to prisons because there was a fifty billion dollar need there and 59 is the amount.
That they took.
But really you can argue that it that it goes -- anything so you could.
Make a list of housing related items.
Which I think the legislatures -- put put language -- to that affect.
And -- -- for housing related items but really it it -- once of those in the general fund.
One dollars like another dollar and it's it's impossible to pinpoint what goes for what.
Thanks money going for the sorry guys Tom Horne thank you so much we appreciate it -- okay.
