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    Saturday, April 27, 2024

    State to reap millions in mortgage settlement

    Hartford (AP) - Attorney General George Jepsen told state lawmakers Tuesday that a national settlement for mortgage abuses has established needed reforms, but he asked that they use millions from the deal to help struggling homeowners and not spend the money on unrelated government programs.

    The $25 billion settlement that Jepsen helped negotiate includes about $120 million for thousands of Connecticut homeowners and $27 million to the state for mortgage relief or counseling.

    Jepsen said he looks forward to working with lawmakers and Gov. Dannel P. Malloy "to ensure that these funds are used to provide additional help to Connecticut's borrowers."

    Rep. Patricia Widlitz, the House chairwoman of the Finance, Revenue and Bonding Committee, said in an interview that the money should be earmarked for borrowers. But she noted that the money "could be tempting" for state government as it seeks revenue.

    "There's always pressure. That's to be expected," she said.

    Lawmakers and previous governors, seeking money to plug budget holes, drew criticism from advocates for reaching into funds set aside to promote energy efficiency and clean energy.

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