California urged to return $331 million meant for homeowners siphoned for budget crisis

SF Gate ^ | 07/13/2015 | Judy Lin

[SeekAndFind]

SACRAMENTO, Calif. (AP) — Several California lawmakers and community assistance groups are calling on Gov. Jerry Brown to repay more than $331 million in funds intended to help homeowners struggling with foreclosures that the state siphoned off to help deal with its budget crisis.

A Sacramento County judge found that the governor and state Legislature unlawfully diverted most of a fund that was part of a $25 billion settlement between five major banks and nearly every state in 2012.

Brown's attorneys argued the state had the discretion to use that money in the state budget. But the judge sided with the community assistance groups in ruling the money should be used to help California homeowners affected by the mortgage crisis. The ruling by Sacramento County Superior Court Judge Timothy Frawley was issued last month, but it has not been finalized.

The Democratic governor hasn't decided if he will appeal, his finance department spokesman, H.D. Palmer, said Monday. Brown's administration did not to respond to questions about whether he would agree to return the money.

"Governor Brown, do the right thing," said Faith Bautista, chief executive and president of the National Asian American Coalition, a nonprofit housing counseling group based in Daly City, California, that was the lead plaintiff in the lawsuit. "This is long overdue because we should have helped the homeowners since 2012. And now it's 2015."

[knarf]

I really mean it ... good luck

[Stevenc131]

Liberal politicians stealing money, what a surprise.

[VRWCarea51]

No problem Jerry, just pull it out of high speed rail fund.

[Pearls Before Swine]

Liberal politicians stealing money, what a surprise.

It was stolen either way. The foreclosure fund is theft from taxpayers to fund underwater homowners' loans. This means it's re-stolen, or stolen twice, or to use paraphrase the phrase for frijoles refrito, it's "twice stolen."

[blackdog]

Like when the SEC / DOJ goes after big banks and agrees to an out of court settlement. They spend the taxpayers money to go after them. They spend the taxpayers money to prosecute them. They then accept the depositors and stock holders (again, taxpayers) money to settle the supposed wrongdoing with no admission of same. Then they take that money to spread around within the DOJ and SEC. They never make the people they claim to be representing, compensated.

What a gig?!

[SkyDancer]

But it was for the good for all peoples in Kaliphorniastan. The budget crisis caused by all those illegal-American Democrat voters.

[blueunicorn6]

Hahahahahahaha!

Just a minute. Have to catch my breath.

Hahahahahahaha!

[tflabo]

Don’t interrupt MoonBeam at the moment.. He and the Pope are meeting to save the world via climate change incantations.
Besides those lieberal Kaleeforrneeaa residents should be happy to share the wealth with the glorious mother state of the peoples.

[SZonian]

"...part of a $25 billion settlement between five major banks and nearly every state in 2012

[usurper]

"Governor Brown, do the right thing," said Faith Bautista,

"LOL" Said Governor Brown. "You really thought I would share my hard earned shakedown swag with you"?

[SunkenCiv]

Yeah, good one.

[sheana]

Yep. I know someone whose home should have been foreclosed on 5 yrs ago but the bank rescued her because she used to work there. Keep Your Home Calfornia just agreed to pay the bank $92000 so she can keep her house. She’ll wind up losing it anyway. This is the 2nd time in 5 yrs she has been threatened with foreclosure.

[Pearls Before Swine]

If you have a huge mortgage, you’re a renter, not an owner.

You never conpletely “own” property because of taxes and zoning, but if you have to pay a lot to the bank, you’re a renter. Why all this talk about kicking people out of “their” homes when they have little equity in them?