Use of Countrywide funds questioned in Mich.

John O'Brien Apr. 8, 2009, 1:12pm


LANSING, Mich. (Legal Newsline) - Michigan Attorney General Mike Cox distributed more funds from a settlement with Countrywide Financial Corp. Tuesday while taking a little heat from a state Democratic leader.

Michigan Democratic Chairman Mark Brewer said he would use the Freedom of Information Act to find out how Cox has determined where to appropriate settlement funds, The Grand Rapids Press reported.

Cox gave $250,000 each to the cities of Sterling Heights and Warren "to assist their efforts in stabilizing neighborhoods hit hard by foreclosures. "

"With Michigan ranked sixth nationally in the number of home foreclosures, it is clear more must be done to help people stay in their homes" Cox said.

Brewer, meanwhile, is curious why $500,000 from the $9.8 million settlement went to a park in Grand Rapids and to a park outside of Southwest Grand Rapids.

The report adds that $1,800 is going to each 3,700 Countrywide foreclosure victims.

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