State Senator Janet Nguyen, whose district includes parts of Long Beach, is working with the Senate Republican Caucus in asking Governor Jerry Brown to return $331 million in mortgage settlement funds to homeowners, funds they allege the State of California used to bridge the state’s budget shortfall in 2012.
In a release issued Wednesday, Nguyen’s office said the funds were provided by a settlement on behalf of the nation’s five largest banks for mortgage service improprieties and were used improperly, triggering a lawsuit against Brown to recoup the funds.
“These funds were supposed to help homeowners avoid foreclosure and any further delay in the return of these monies can result in immeasurable negative impacts to homeowners, including property loss,” said Nguyen in a statement.
The release states that the court agreed with the aforementioned lawsuit, filed by the National Asian American Coalition, the COR Community Development Corporation and the National Hispanic Christian Leadership Conference. Judge Timothy Frawley ruled that the funds had been misused and must be returned to homeowners when “sufficient and reasonable funds available for this purpose” materialize.
“With budget revenues at $13 billion higher than a year ago, Governor Brown should take some of that additional funding to comply with Judge Frawley’s order,” said Nguyen in a statement.
The organizations behind the suit contacted Nguyen in assuring that Brown returns the money to 800,000 homeowners in California, according to the statement. The release states that Nguyen pushed the Senate Republican Caucus to send the letter to Brown with their request.
Above, left: file photo.
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