Governor asked to repay millions to homeowners in foreclosures

Jul 7, 2015 1:46 AM by Debbie Cobb

SACRAMENTO, Calif. (AP) - Some California lawmakers and community assistance organizations are calling on Gov. Jerry Brown to repay more than $331 million that was intended to help homeowners facing foreclosures.

A Sacramento County judge ruled that the governor and state Legislature unlawfully diverted most of a fund that was part of a settlement between states and major banks after the mortgage crisis.

Brown's attorneys argued the state had the discretion to use the money in the state budget. The judge ruled the fund should be used to assist an estimated 800,000 affected homeowners, but he can't force the state to repay it.

Two Republican lawmakers have offered to support legislation to return the funds.

Brown has not decided whether to appeal. His administration did not say Monday if it would return the funding.


Most Popular