The California Attorney General worked hard to get the Golden State’s share of the national mortgage settlement — $25 billion meant to go from big banks to American families.
Everyone was on board and the money was meant to flow to distressed homeowners in hopes of staving off more foreclosures.
It was a feel good moment for everyone, one we could all get behind.
Then the state stepped in and had to ruin this nice thing for everyone.
The state funneled some of that money, $331 million, to programs it deemed more in need of attention. It used, rather stole, this money intended for homeowners to give it to someone else.
And on Friday, a judge ruled they have to give it back. Better late than never, but really California, now other states are going to get sued for the exact same thing.
“We’ve identified about a dozen states where it might be appropriate to take action,” said Robert Gnaizda, general counsel to one of the plaintiffs, the National Asian American Coalition, as quoted in coverage from the New York Times’ Gretchen Morgenson.
“We decided not to go forward with other actions until this case was decided.”
The state of California played with the lives of some of its most vulnerable citizens for its own gains. It ruined something that could be seen as an all-around victory.
Maybe, with Friday’s ruling, the other states in question will take some initiative and began to return the money to the rightful homeowners who deserved it two years ago, if they are even in their homes anymore.
h/t: Neil Barofsky’s twitter. He is the former special inspector general of the Troubled Asset Relief Program and a partner at plaintiff law firm Jenner & Block, according to this article.
He sent this tweet earlier.
California Has to Repay $331 Million to Homeowners Fund, Court Rules http://t.co/G9cJ0sh2wk— Neil Barofsky (@neilbarofsky) June 15, 2015