Distribution of Foreclosure Settlement Should Favor the City

(MADISON) Senator Lena C. Taylor (D-Milwaukee) led legislative Democrats in urging state Attorney General J.B. Van Hollen to consider Milwaukee in determining the award distributions from the recently announced foreclosure settlement. Wisconsin is expected to receive $41 million of the $25 billion dollar settlement with Bank of America, Wells Fargo, Citibank, Ally and JP Morgan Chase.

“Milwaukee, more than any other Wisconsin city, was devastated by the collapse of the housing market,” Taylor commented. “Funds from the foreclosure settlement can be used to stabilize and revitalize the housing market. Without a fair distribution of the settlement, taxpayers will be forced to bear the burden of paying for the properties. It is my hope that Attorney General Van Hollen will be rational and reasonable in his allocation.”

Senator Taylor authored the Mortgage Mediation Act, introduced during the 2009 legislation session, to alleviate the impact the foreclosure crisis was having on the economy, home values, and property tax bases. The bill created a mediation process to protect homeowners who own a first or second mortgage on a residential property. Although it was not passed, the legislation had bipartisan support.

A copy of the letter is enclosed.