Remember how all of the States (Washington included) recently patted their backs about how they beat up the big banks as to alleged ‘fraudulent lending practices’ and got billions from the big banks in restitution. The restitution was to be paid by the banks to the States to be specifically used to assist homeowners in financial distress? Surprise, surprise….The States pocketed the cash in their general accounts and the homeowners got nothing. Both Republican and Democratically controlled legislatures did so. So, was the recent bashing of the big banks more about shacking them down for cash (like the states did in the 90s with the tobacco companies) than really helping homeowners?
States Divert Nearly Half of Settlement Money Earmarked for Housing.