Abusive Lending

In Assemblyman 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.

Instead, 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 State’s budget.

To that 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 distressed homeowners.

A copy of the letter to Governor Newsom is available here.   

It’s an honor to represent you.