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Press Release California Court Rules That Governor Brown Unlawfully Diverted $331 Million


Groups Demand that $369 Million Improperly Taken from Attorney General Bank Settlement be Returned to Homeowners Facing Foreclosure

At 9:30 a.m. on March 14th, major Black, Latino and Asian American organizations filed a Petition in Sacramento Superior Court demanding that Governor Brown return up to $350 million out of California’s share of the 2012 National Mortgage Settlement that was secured by California Attorney General Kamala Harris, so that it can be used as intended – to aid the state’s millions of homeowners in distress via direct relief and through grants to the organizations that support them.

The full text of the petition for writ of mandamus can be viewed here.

Letters of support have been sent to the Governor by HomeFree-USA, the largest minority-led, HUD-approved home counseling intermediary in the nation, with affiliates in California, including the NAAC; and Operation HOPE, a national organization headed by John Bryant that also offers HUD-approved home counseling, and whose Chairman is leading civil rights figure and former U.S. Ambassador to the United Nations, Andrew Young. Both organizations state that they are available to meet with the Governor and the Petitioners to resolve the lawsuit.

The lawsuit has been covered by Gretchen Morgenson at the New York Times.