Connecticut officials expect to spend the state's portion of the $25 billion mortgage foreclosure servicing settlement on programs for distressed homeowners.

The state's Governor Dannel Malloy and Attorney General George Jepsen announced that $119 million in loan modification and refinancing assistance will be spent on Connecticut homeowners. Another $7.3 million will go to foreclosure victims, and $28.1 million in payments will go to state initiatives aimed at trying to end the negative effects of the foreclosure crisis, the AG and governor confirmed in a statement.

"At a time when other states are using money from this settlement to plug holes in their budgets, Connecticut is taking a different path," said Governor Malloy. "We know that many homeowners are still struggling, and until we find a way to bring stability to the housing market, there will continue to be a drag on our recovery. This funding will help assist a critical component of our overall economic goal, to promote economic growth that is sustainable and benefits a majority of our residents."

kpanchuk@housingwire.com