Conn. to reap millions in settlement

Associated Press

Updated: Feb 21, 2012 5:21 PM

HARTFORD, Conn. (AP) — Connecticut's attorney general says a national settlement for mortgage abuses has established needed reforms, but he wants lawmakers to use millions from the deal to help struggling homeowners and not unrelated government programs.

Attorney General George Jepsen briefed members of the legislature's Banks Committee on Tuesday about the settlement he helped negotiate.

The $25 billion national settlement includes about $120 million for thousands of homeowners and $27 million to the state for mortgage relief or counseling.

Jepsen said he would work with lawmakers and Gov. Dannel P. Malloy to make sure the money is used to help borrowers.

Rep. Patricia Widlitz, the House chairwoman of the Finance, Revenue and Bonding Committee, said the money should be earmarked for borrowers, but acknowledged that the money is tempting for state government as it seeks revenue.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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