Challenge to Arizona's use of mortgage settlement rejected

PHOENIX - A lawyer for housing advocates say they'll probably appeal a judge's rejection of a challenge to Arizona's use $50 million from a multistate foreclosure settlement to help balance the state budget.

The ruling by Judge Mark Brain of Maricopa County Superior Court dismisses a lawsuit challenging how the state is using some of the settlement money paid Arizona by lenders.

Brian's ruling released Wednesday rejects housing advocates' argument that the attorney general could decide how the money is used. Brian says the Legislature decides how to spend the state's money.

Critics of the Legislature's decision to put $50 million into the general state budget wanted the money to be used for programs and services for borrowers and troubled homeowners.

Some settlement money is being used for those purposes.

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