• Home
  • Who We Are
  • Journal
  • Contact Us
Surviving Sacramento Surviving Sacramento Surviving Sacramento Surviving Sacramento
  • Home
  • Who We Are
  • Journal
  • Contact Us
Governor Brown Signs Bill that Could Determine the Fate of Disputed Foreclosure Funds

Governor Brown Signs Bill that Could Determine the Fate of Disputed Foreclosure Funds

September 25, 2018 California Legislature, Controversy

Earlier this month, Governor Jerry Brown signed Senate Bill 861 (SB 861), which allows the state to keep $331 million of disputed foreclosure funds. The bill cleared both houses on party-line votes and was signed by the governor two weeks ago. The disputed foreclosure funds were part of the National Mortgage Special Deposit Fund (NMSDF), which was established in 2012 to help those homeowners who were suffering and adversely impacted by the housing crisis. In 2015, the Sacramento Superior Court and California’s Third District Court of Appeals agreed that Governor Brown must repay the $331 million that was illegally diverted to the State’s General Fund. Neil Barofsky, lawyer for the National Asian American Coalition and other groups that sued over the funds, told the following to the San Francisco Chronicle,

There’s nothing about the bill that impacts the governor’s obligation to follow a federal consent order, particularly one that his agent (Harris) signed.

In 2012, then Attorney General Kamala Harris, who is now a U.S. senator, had helped to negotiate the settlement and was responsible for allocating the funds. Harris directed $331 million to a fund devoted to programs assisting homeowners who had been harmed by foreclosures, which included programs such as housing counselors, legal and consumer education, and efforts to investigate and combat financial fraud. SB 861 declares that Brown had properly cleared his funding decisions with lawmakers and had complied with the 2012 law by using the money to bail out state agencies overseeing housing and consumer services. Luckily, the courts still have a chance to voice their opinion in regards with how the funds should be used.

Read the full article here

Tags: AidCalifornia’s Third District Court of AppealsCourtForeclosureFundingFundsGovernor Jerry BrownKamala HarrisLawyersNational Mortgage Special Deposit FundNeil BarofskyNMSDFProgramsSacramento Superior CourtSan Francisco ChronicleSB 861Senate Bill 861State General Fund
Share

You also might be interested in

STOP! Don’t Chalk That Tire!

STOP! Don’t Chalk That Tire!

May 2, 2019

Recently, a panel of judges from the Sixth District Court[...]

National Mortgage Settlement Money must be Repaid by California

National Mortgage Settlement Money must be Repaid by California

Aug 8, 2019

Last month, the California Supreme Court refused to hear an[...]

San Francisco Homeless Issues are still bad Despite Money and Efforts

San Francisco Homeless Issues are still bad Despite Money and Efforts

Jul 3, 2017

You would think that homelessness in San Francisco would have[...]

Leave a Reply

Your email is safe with us.
Cancel Reply

You must be logged in to post a comment.

© 2021 · Surviving Sacramento.

Prev Next