Governor Jay Nixon got some good news from Attorney General Chris Koster, and that translated to good news for higher education in Missouri.

Nixon submitted an amendment to his recommended budget for Fiscal Year 2013 that restores $40 million in funding for Missouri’s public colleges and universities.

Attorney General Koster says the state is expected to receive a total of more than $140 million in benefits under a proposed settlement of a huge mortgage fraud suit.

Koster announced preliminary support for a proposed multistate settlement agreement with the five largest mortgage lenders in the US. Attorneys general in all 50 states sued the lenders over their allegedly flawed and fraudulent mortgage foreclosure practices.

Koster, who participated in the negotiations in both Missouri and Washington, D.C., believes that the two sides have made substantial progress and are nearing agreement.

Koster said that Missouri could receive in excess of $40 million in direct payments from the banks and in excess of $100 million in additional benefits to Missouri homeowners.

Should the negotiations come to a productive conclusion in the coming days, Koster has indicated that he will sign the agreement on behalf of Missouri.

The budget amendment directs $40 million to Missouri’s public colleges and universities.

“This has been a lengthy and extremely complex settlement process, and I commend Attorney General Koster for his dedicated and persistent leadership at every stage of the negotiations,” Gov. Nixon said. “This settlement with America’s largest mortgage banks will help the states and individual consumers continue their economic recovery.”

Gov. Nixon will meet with the presidents and chancellors of Missouri’s two- and four-year colleges and universities in his office on Thursday to brief them on these developments and the amendment to his recommended budget.