Obernolte Capital Update, Thursday, April 11, 2019, he calls attention to:
In 2012 the federal government gave California $331
million to aid homeowners who were victimized
by abusive lending practices.
former Governor Brown used the money to pay state agencies in housing and other programs to cover the budget deficit
in 2012. Last July, the Third District Court of Appeals said the state violated
the terms of this
mortgage settlement agreement and ordered the money to be paid back. In
response, the Legislature introduced Senate Bill #861, a budget Bill that
retroactively said it was legal to use this money for the budget deficit.
On April 2, 2019 the appeals court again
unanimously ordered the state to give the money to the homeowners.
I was a
staunch opponent of SB 861 last year. I'm glad the court once again has ruled in favor of
these homeowners. I hope this time the Legislature doesn't try to keep the $331
million, which was unlawfully diverted to the
end, I’ve signed a letter urging Governor Newsom to not appeal this court
ruling and to instead comply with the court order to help financially
A copy of the letter to Governor
Newsom is available here.
It’s an honor to