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SACRAMENTO – Senate Republican Leader Shannon Grove (R-Bakersfield) issued the following statement after the California Supreme Court recently upheld a ruling by the Third District Court of Appeal which had ordered California to use funds collected during a 2012 Mortgage Settlement lawsuit to help struggling homeowners. The settlement agreement collected $331 million to help financially-distressed homeowners victimized by unfair lending practices and was intended to provide legal aid, foreclosure hotlines, consumer education and efforts to combat financial fraud.
Instead Governor Brown spent the money on other programs. Since then, two separate court rulings have ordered California to return the funds to their intended purposes. Governor Newsom filed an appeal to one of the court rulings and just recently, the California Supreme Court weighed in.
“Legislative Republicans have been fighting this issue to help distressed homeowners since 2015. With the recent decision from the state’s highest court, this is a victory for those homeowners and validates what legislative Republicans have been advocating all along. I urge the governor to return the settlement funds to help struggling homeowners and fulfill the original intent,” said Senate Republican Leader Shannon Grove.