UPDATED Tuesday, February 14, 2012 --- 2:06 p.m.

MILWAUKEE (AP) -- U.S. Rep. Tammy Baldwin is asking the nation's attorney general to make it harder for states to redirect money that comes from mortgage settlements against large banks.

Her comments Tuesday came after Wisconsin was awarded $140 million as part of a national mortgage settlement. Gov. Scott Walker said he plans to use about $26 million of that to help plug a state budget hole.

Baldwin criticized the plan, saying the money needs to go to those who were devastated by the housing crisis.

The Wisconsin Democrat submitted a letter to U.S. Attorney General Eric Holder. In it, she asks that any future settlements that are reached include language that would prohibit states from doing what Walker is planning.

A message left with a Walker spokesman was not immediately returned.

Copyright 2012. The Associated Press.

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UPDATED Friday, February 10, 2012 --- 12:30 p.m.

Wisconsin will use about $26 million of its $140 million share of a national mortgage settlement to help plug a state budget hole.

Attorney General J.B. Van Hollen's office made the decision in consultation with Gov. Scott Walker.

The rest of Wisconsin's share will go toward helping homeowners who were affected by foreclosure abuses between 2008 and 2011.

Walker said at a news conference Thursday that just like communities and individuals affected by the foreclosure crisis, the state has also been harmed and the payment will go toward offsetting that.

But Milwaukee Mayor Tom Barrett told the Milwaukee Journal Sentinel in a story published Friday that none of the money should go toward the state budget.

A new projection shows the state faces a $143 million budget shortfall.

Copyright 2012. The Associated Press.

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UPDATED Thursday, February 9,2012--5:50p.m.

MADISON--Around the nation state attorneys general are celebrating a $25 billion mortgage settlement.

Wisconsin's take will be about $140 million.

And it applies to folks who have one of five major banks as their mortgage servicers. Those are Ally, Bank of America, Citi, JPMorgan Chase and Wells Fargo.

The settlement means the banks will be making payments to some Americans whose homes were inappropriately foreclosed upon. It's also going to allow some homeowners that are currently under water to refinance at today's low rates. And others may qualify to have their principal reduced.

Officials say this should help change servicer practices.

Here in Wisconsin, a good chunk of the money will likely find its way to the Milwaukee area. "The overwhelming majority of this money is going to be going to Milwaukee," said Attorney General J.B. Van Hollen. "The overwhelming majority of the foreclosures and the loans where people are upside down are in the city of Milwaukee "

Over the next six to nine months banks are supposed to be identifying eligible people. But the settlement itself will be executed over the next three years. There will also be an independent monitor that will make sure banks are complying with this settlement.

A quick note, this settlement does not include Fannie Mae or Freddie Mac.

If you'd like more information. you may find the websites below helpful.

http://www.doj.wi.gov/dls/ConsProt/mortgage-servicing-settlement.asp

http://www.nationalmortgagesettlement.com/

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UPDATED Thursday, February 9, 2012 --- 9:55 a.m.

MADISON, Wis. (AP) -- Wisconsin homeowners are expected to receive $140 million as part of a national $25 billion settlement with the nation's biggest mortgage lenders over foreclosure abuses.

Gov. Scott Walker and Attorney General J.B. Van Hollen announced the terms Thursday as part of the settlement with Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial.

Of Wisconsin's share, about $60 million in benefits will come from loan modifications and other direct relief. There will be about $17 million for those whose homes were foreclosed on and suffered servicing abuses between 2008 and the end of last year.

About $31 million will be available in refinancing benefits. The state will get about $31.6 million to be used for future lawsuits and additional relief to borrowers.

Copyright 2012. The Associated Press.

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Posted Thursday, February 9, 2012 ---- 9:25 a.m.

From the Governor's Office:

MADISON — Governor Walker, Attorney General Van Hollen and Secretary of the Department of Financial Institutions Peter Bildsten, will announce - - that Wisconsin has formally joined a landmark $25 billion joint federal-state agreement with the nation’s five largest mortgage servicers over foreclosure abuses and fraud, and unacceptable nationwide mortgage servicing practices. The proposed agreement provides Wisconsin an estimated $140 million.

“The settlement being announced today will help bring relief to Wisconsinites who were harmed by unfair mortgage practices and help prevent future deception from occurring,” said Governor Walker. “Thanks to the work of Attorney General Van Hollen, the state of Wisconsin and others, Wisconsinites are being helped and mortgage lenders who deceived the people of our state are being held accountable.”

“This agreement provides real relief to homeowners and real reform of servicing standards – now,” Attorney General Van Hollen said. “The people of this state, and our economy, have suffered enough from the unfair and deceptive practices of the mortgage industry. Today, with this settlement, the banks and mortgage servicers are being held accountable and, more importantly, homeowners and communities are receiving much-needed assistance.”

To learn more about what this means for Wisconsin residents, Governor Walker, Attorney General Van Hollen, and Secretary Bildsten will address the media today.

Under the Agreement, the mortgage servicers will be required to follow comprehensive “servicing standards” that will significantly reform all aspects of post-closing mortgage servicing. Among other things, the new standards will: (a) prevent robo-signing and other improper foreclosure practices; (b) require banks to offer loss mitigation alternatives to borrowers before pursuing foreclosure; (c) increase the transparency of the loss mitigation process; (d) impose timelines for servicers to respond to borrowers; and (e) restrict the practice of “dual tracking,” where foreclosure is initiated despite the borrower’s engagement in a loss mitigation process.

Monetary benefits to Wisconsin will include:

- Up to an estimated $60 million in benefits from loan term modifications and other direct relief.

- Approximately $17.2 million in uniform payments of up to $2,000 for eligible Wisconsin borrowers who lost their home to foreclosure from January 1, 2008, through December 31, 2011, and suffered servicing abuses. Approximately $31.3 million in refinancing benefits for eligible borrowers who are currently making payments but owe more than their home is worth.

- Payment to the State of approximately $31.6 million that may be used for compensation to the State, future law enforcement efforts, additional relief to borrowers, civil penalties and/or funding of foreclosure relief and mitigation programs.

The unprecedented joint state-federal settlement is the result of a massive civil law enforcement investigation and initiative that includes a national bipartisan coalition of state attorneys general and state banking regulators, and nearly a dozen federal agencies.

The five mortgage servicers entering into the settlement are Bank of America, J.P. Morgan Chase, Citigroup, Residential Capital (Ally Bank/GMAC), and Wells Fargo & Co.

“This settlement will help Wisconsin consumers on things such as mortgage principal reduction, refinancing opportunities and, in some cases, direct reimbursement. This will strengthen Wisconsin’s housing market and the state’s economy,” said Peter Bildsten, Secretary of the Department of Financial Institutions.

The settlement does not grant any immunity from criminal offenses and will not affect criminal prosecutions. The agreement does not prevent homeowners or investors from pursuing individual, institutional or class action civil cases against the five servicers. The pact also enables state attorneys general and federal agencies to investigate and pursue other aspects of the mortgage crisis, including securities cases. The final agreement, through a consent judgment, will be filed in U.S. District Court in Washington, D.C., and will have the authority of a court order.

Borrowers should contact their mortgage servicer to obtain more information about specific loan modification programs and whether they qualify under terms of this settlement. More information, including a list of frequently asked questions and how Wisconsin consumers may seek assistance, is available at the Wisconsin DOJ homepage.

www.doj.state.wi.us

Customers may call the following numbers for assistance:

Bank of America 1-877-488-7814
J.P. Morgan Chase 1-866-372-6901
Citigroup 1-866-272-4749
GMAC 1-800-766-4622
Wells Fargo & Co. 1-800-288-3212

Other online resources include the following:
www.NationalMortgageSettlement.com
www.HUD.gov
www.DOJ.gov