Posted 1 year ago on May 17, 2012, 11:49 a.m. EST by GildasSapiens
This content is user submitted and not an official statement
Needy states use housing aid cash to fund prisons, education shortfalls, and plug budgets
"As part of a financial settlement over fraudulent mortgage practices earlier this year, some of the nation's largest banks agreed to make payments to state government totaling $2.5 billion that would be earmarked for victims of wrongful foreclosure and other distressed homeowners. Instead, reports the New York Times today, a majority of those funds are going to plug state budget shortfalls, leaving homeowners without recourse and validating critics who questioned the strength of the deal when it was announced in February."