
Sometimes I wonder why voters get so cynical about the government. Then there are days that I join the chorus.
As a state with booming housing starts and population growth in the late 2000's Virginia was hit hard by the foreclosure crisis. Prince William and Loudoun were hit hard. It also hit the Route 1 Corridor. When I knocked doors in new townhouses around Huntington in 2009, neighbors were complaining to me about people purchased claiming rental homes are primary residences, putting 10% down, and then bailing. There have been other pockets of foreclosures along U.S. 1 as people over committed into homes they couldn't afford.
Last year, forty-nine attorneys general and the federal government announced
a $25 billion settlement with five of the largest banks. As part of that, $2.5 billion was paid to states. The Court ordered the following regarding that money:
In Virginia. we took $66,525,233.00 and it initially went into the Attorney General's Regulatory, Consumer Advocacy, Litigation and Enforcement Revolving Trust Fund. You can read the court order for yourself - it's pretty clear:
Each State Attorney General shall designate the uses of the funds set forth in the attached Exhibit B-1. To the extent practicable,such funds shall be used for purposes intended to avoid preventable foreclosures, to ameliorate the effects of the foreclosure crisis, to enhance law enforcement efforts to prevent and prosecute financial fraud, or unfair or deceptive acts or practices and to compensate the States for costs resulting from the alleged unlawful conduct of the Defendants. Such permissible purposes for allocation of the funds include, but are not limited to, supplementing the amounts paid to state homeowners under the Borrower Payment Fund, funding for housing counselors, state and local foreclosure assistance hotlines, state and local foreclosure mediation programs, legal assistance, housing remediation and anti-blight projects, funding for training and staffing of financial fraud or consumer protection enforcement efforts, and civil penalties. Accordingly, each Attorney General has set forth general instructions for the funds in the attached Exhibit B-2.